Verimatrix, the IP TV content security vendor, raised further $5 million in funding taking the total funding raised so far to $20 million. The company has activated over 3 million IP TV set-top boxes that come pre-integrated with Verimatrix software. So if around 10.5 million IP TV STBs have been deployed so far, the vendor can claim around 30% market share in IP TV related content-security / DRM /CAS solutions.
Business model: The product sells as client component integrated with STB vendors and server component deployed by telcos at the headend. Verimatrix pre-integrates the client component with STBs free of charge. It makes money when the telco activates that license from the head-end. Verimatrix mostly sells direct to telcos. However the company also works with OEM partners such as Nokia-Siemens and Comverse. It has a fairly large ecosystem of partners which includes STB vendors, middleware vendors, encoder vendors etc.
(Customers, Sales, Geographic split of licenses, Strengths)
Customers: First IP TV deployment in 2003 at Korea Telecom. An impressive list of tier ones including NTT, Belgacom, KPN, Korea Telecom, and Telecom Italia. The company has 80 global IP TV service provider customers, 8 of whom are tier one carriers. Verimatrix also serves hybrid IP/Satellite providers. About 20% of business comes from the hybrid deployments.
Sales: The 3 million license figure was accomplished last month. The company completed deployment of 1 million licenses by April 2006; 2 million by April 2007; and 3 million over the period of last six months.
Geographic split of licenses: 40% Asia Pacific; 40% EMEA; 20% North America.
Strengths: Large ecosystem; market leader; multi platform support; scalable solution; hybrid approach; top tier customers.