The way we use home entertainment is transforming rapidly. Large corporates in the media and telecoms sectors arguably are ensuring they will not be at the reactive end of this trend, as has been evident so far this month.
Twelve days ago British Sky Broadcasting Group backed internet television company Zeebox, founded by Anthony Rose, the developer of UK broadcasting company BBC’s internet offering iPlayer.
This deal was followed in the past week by telecoms company SFR’s corporate venturing unit backing Japan-based cloud gaming company G-cluster, joining Intel Capital in the deal. G-cluster’s technology allows games and high quality videos to be streamed, on a wide range of devices. See the Utilities section below for the G-cluster news story.
The transaction is one of the largest hatched by the unit SFR Développement, since it was founded in 2006, investing "seven digits", above its usual circa €1m ($1.3m), and seeing it match the size of Intel Capital’s investment in the deal.
SFR’s commitment follows a close relationship at the company level, showing how it can be valuable for large corporates looking to work with promising companies early in their development. Marc Westermann, a principal at SFR, said: "The company was quite attractive. Our main advantage was we had been working more than a year with them. They can now say to people their first and biggest client is the happiest and is now investing in the company."
Additionally it shows the advantage that can be had from playing to your strengths. Westermann added telecoms operators have a big advantage in cloud gaming, because they can guarantee the speed of the products sold are tailored to the network in which they are used. He explained: "Cloud gaming is all about the millisecond."
Corporates arguably are some of the best-placed to see how we will end up entertaining ourselves in the coming years. Do not be surprised if you find yourself playing games on a cloud network or tweeting on your television in the not-too-distant future, if you are not doing so already.