Shaw Communications Inc. (SJR), a leading Canadian cable MSO is trying hard to deploy on-demand online video services, popularly known as TV Everywhere service. The company has decided to purchase Verivue Inc’s flash-centric video switch to be used in its legacy video-on-demand platform. Verivue’s MDX 9000 Series Media Distribution Switch is a network-centric platform designed to pipe video in formats that enable viewing on TVs, PCs, and mobile devices. This pretends to a TV Everywhere service which basically offers broadband video service that will enable pay-TV subscribers to watch premium cable programming online over broadband networks.

At present, Shaw is using Arris Group Inc’s (ARRS) servers and back-office systems for its existing video-on-demand platform. In Jan 2009, Arris entered into an agreement with Verivue to provide a converged video service network. Arris plans to standardize a large part of its next-generation video-on-demand and interactive video platform on Verivue’s “solid state” video pump servers. Arris also resells Verivue’s MDX platform.

According to our assessment, implementation of TV Everywhere service is critical for Shaw in order to maintain its future growth. The company’s closest rival Rogers Communications Inc. (RCI) has already started its TV Everywhere service in Canada, offering more than 1,000 hours of content from almost 50 broadcast and cable programming partners. Shaw Communications is the largest cable television provider in Western Canada with approximately 2.3 million basic cable TV customers and 1.29 million digital customers representing 30% of the Canadian cable TV market. Some industry predicted that Rogers is desperately trying to enter into Shaw’s territory of western Canada through a swap of regional cable operations with Halifax-based Bragg Communications.

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