TiVo is moving one step closer to being a cloud service. Today they announced the purchase of Digitalsmith for the tidy sum of $135 million. Digitalsmith, which is a video technology company, offers a technology they call Seamless Discovery. This powerful technology offers recommendations to viewers based on their viewing habits. TiVo CEO Tom Rogers stated,”The Digitalsmiths acquisition opens new opportunities to commercialize and deploy TiVo’s cloud-based services and technologies to operators, in an extremely cost effective way that can be offered either independently or in conjunction with TiVo’s renowned user interface.”

Digitalsmith’s technology is used on most of the top 10 pay TV services. A list of some of it’s clients include Playstation, Roku, Xbox, Android, iOS and other set-top devices. Digitalsmith wasn’t officially up for sale, but the company fielded multiple offers from interested parties. Last year’s Digitalsmiths revenue increased a whopping 80%.

TiVo’s acquisition of Digitalsmith isn’t totally unexpected. TiVO recently laid off the majority of it’s hardware staff, keeping only a skeleton crew to offer tech support for their current hardware line. TiVo has repeatedly stated that their future resides in software and not hardware. The acquiring of Digitalsmith will allow TiVo to develop a much broader presence on a variety of current and future set-top boxes. With increased competition from Smart TVs and other set-top box devices, the decision by TiVo to begin transitioning to being a software provider will probably prove to be a wise one.

 

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