Ericsson intends to acquire FYI Television, an entertainment metadata and media content supplier based in Texas, USA.
The acquisition, which is subject to customary closing conditions, will strengthen Ericsson's position in broadcast and media services.
FYI Television accumulates and distributes TV entertainment content and linear scheduling data from over 9,000 TV networks daily, aggregating the information into customised formats for various digital, media, content, analytics and print clients for use on their connected devices such as tablets, phones, desktops, internet portals and gaming consoles.
The growing range of TV and video services available on various devices creates a range of options for viewers to choose between.
Based on Ericsson's latest ConsumerLab research, 50% of linear TV viewers say they are unable to find good programming to watch on a daily basis - highlighting the importance of content discovery.
Combining FYI Television's US-market expertise in metadata, conversion and integration services with Ericsson's position in these areas in Europe will create a powerful global force in content discovery, Ericsson said.
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Whether viewers are watching linear or on-demand video, Ericsson will ensure they can discover content whenever - and wherever - they search for it; and always in the right format.
Magnus Mandersson, executive vice president and head of business unit global services at Ericsson, said: "As the TV industry evolves and viewing behaviour changes, we believe that high-quality, rich metadata will be a key component for a personalized TV experience. Combined with our capabilities in TV platforms and content discovery, we will be able to help our customers to improve the video experience and identify new revenue opportunities. FYI Television's expertise and customer base in the US is a great complementary fit for Ericsson and will be an integral part of our growth strategy. It will strengthen our position as one of the leading providers of media services in the world."
FYI Television's employees will join Business Line Broadcast & Media Services, part of Ericsson's Business Unit Global Services, with the acquisition expected to close in Q1 2016.
Earlier this year, Ericsson established a US broadcast and media services hub based in Atlanta, Georgia. The company currently provides closed captioning services to broadcasters around the world from this hub, with plans to roll out video description services over the coming months.