ActiveVideo Networks Acquires TAG Networks: Addresses High Demand for a Games Platform on the TV

SAN JOSE, Calif., May 5 /PRNewswire/ -- ActiveVideo Networks™, the global leader in cloud-based interactive television solutions, today announced that it has completed an acquisition of TAG Networks, adding the world's most scalable network game platform to its CloudTV interactive streaming platform.

The acquisition extends ActiveVideo's CloudTV development platform to include games development, a growing and profitable segment of the entertainment market.  The combined entity leverages TAG Networks' successful technology and content portfolio with ActiveVideo's proven CloudTV to create a powerful and versatile platform that supports both casual and twitch or fast-motion games.

Using TAG's extensive portfolio of licensed titles, ActiveVideo can enable the development of new revenue streams for cable system operators and the CE industry through the delivery of advertising supported casual games to any digital set-top box or CE device.  ActiveVideo, which currently is in approximately 5 million homes, anticipates that the combined benefits of TAG and CloudTV, the addition of compelling new titles and the ultimate introduction of faster-paced games will significantly drive distribution of both services for the foreseeable future.

"We believe that the games category, which exceeds $25 billion, is among the most significant growth opportunities for our cable, programmer and CE manufacturer customers," said Jeff Miller, president and CEO of ActiveVideo Networks.  "Combining TAG's advanced games platform with our own industry-leading cloud platform provides our distribution and programming partners with a single, robust solution for delivering games, social communities, iVOD, internet video, advanced advertising, interactivity and commerce to TVs around the world."

In conjunction with the acquisition, TAG Networks' management team and staff have been relocated to ActiveVideo's corporate headquarters in San Jose.  Sangita Verma, CEO and founder of TAG Networks, and Robert Craig, chief creative officer and founder, will serve as President of TAG Games and Chief Creative Officer of TAG Games, respectively, for ActiveVideo Networks; TAG CTO Cliff Mercer will serve as Senior Vice President, Engineering of ActiveVideo Networks.

"TAG and ActiveVideo Networks have successfully collaborated for many years and together we have proven the value of games as drivers of television interactivity," said Verma.  "Now as a part of the ActiveVideo team, we're looking forward to expanding our vision and making the TAG games platform available to other games developers and content owners."

Earlier this year, TAG announced that its games-on-demand channel was the stickiest channel on Oceanic Time Warner Cable, according to TNS set-top box data.  The TNS Average Daily Minutes (Viewed) data for 2009 indicated that TAG households averaged 116.5 minutes per day in engagement with the channel.  TAG Networks also recently announced that it had established an industry record for streaming games density and scalability by supporting 2,000 concurrent MPEG game streams at 1.25Mbps with a single off-the-shelf 1RU dual quad-core server,

TAG is currently deployed to hundreds of thousands of households throughout the US via digital cable. Additional deployments and trials are slated over the next 12 months.

ActiveVideo immerses viewers in an engaging experience that combines Web video, Web 2.0 functionality and traditional television.  With ActiveVideo, viewers can navigate a completely interactive environment of both linear and broadband programming, including rich interfaces and graphics optimized for TV and remote control navigation; social networking; personal media; niche content; and targeted, actionable advertising.  ActiveVideo uses intelligent MPEG streaming to deliver the Web 2.0 experience to a worldwide television audience through both legacy and next-generation digital set-top boxes and broadband-connected devices.

About TAG Networks

TAG Networks has created the nation's first massively deployable television games channel for cable, IPTV and internet connected devices. The Company's TV games channel, called "TAG", brings high-quality casual games to broad television audiences. Its programming lineup features blockbuster brands and classic favorites in a multitude of genres – puzzle, cards, word, trivia, action, sports, and kids' games – that appeal to everyone in the family. The channel also supports rich community features and multi-device interaction. As the leading games-on-demand provider, TAG Networks' revolutionary technology, which seamlessly integrates into existing digital cable and IPTV infrastructures, provides incredible scalability and ease of functionality. With proven broad demographic appeal and unmatched viewer participation for TV games, TAG enables TV operators to capture revenue from over 100 million gaming households which subscribe to a digital pay TV service. For more information, visit www.playtag.com.

About ActiveVideo Networks

ActiveVideo Networks is the world leader in cloud-based interactive services that are redefining television (iTV 2.0).  The company's network-centric approach simply and inexpensively enables expanded programming, navigation and advertising possibilities, allowing viewers to define and share their TV experiences.  ActiveVideo combines Web-based media and targeted, clickable advertisements with the high-quality video, immediate responsiveness and remote control navigation of television for uniform interactivity across all digital and IPTV set-tops, CI+ enabled televisions, and broadband-connected CE devices. ActiveVideo Networks is based in the heart of Silicon Valley, with offices in Los Angeles, Baltimore and Hilversum, the Netherlands. For more information, visit www.activevideo.com.

SOURCE ActiveVideo Networks