Audio Video News

Digeo, the maker of the Moxi HD DVR and other products, has been acquired by Arris, an IP technology power. The acquisition may increase Moxi's penetration in the cable sphere.

Digeo was founded in 1999 with Paul Allen money. Its current product line includes the Moxi HD DVR (which can be purchased for $799 or rented for $39.95/month), the Moxi Mate, a home networking box that works with the DVR ($399, $19.95/month), and the Moxi Cable, a version of the DVR that cable companies rent to subscribers. All of these products just made their debuts this year, starting with the Moxi HD DVR at the January 2009 CES. Unlike TiVo, the Moxi program guide comes at no extra charge to consumers who purchase or rent the products.

Arris is a worldwide supplier of IP-based technologies such as VOIP, high-speed data, on-demand video, targeted ads, and deep fiber transmission. More than half of its employees are engineers. It has a substantial cable-company clientele. So Arris' purchase of Digeo should bring Moxi products to more cable customers. The Arris people also say Digeo will give them valuable insight into the consumer.

Moxi products will continue to be sold, existing Moxi customers will continue to receive program guide service and product updates, and existing Digeo employees will keep their jobs in Kirkland, Washington. Presumably Arris' engineering depth will accelerate the growth of Moxi products as platforms for the union of video, data, and voice in various devices networked throughout the home.

The acquisition raises the question of what will happen to Moxi products in the longterm. Once there were three significant DVR players: TiVo, RePlayTV, and UltimateTV. RePlayTV started as a standalone DVR product, evolved into PC software, and was acquired by DirecTV, where it now has a low profile. UltimateTV was bought by Microsoft and is now licensed to DirecTV. Only TiVo has survived in something like its original form, still making TiVo-branded DVRs and licensing its technology to various players while remaining independent, bolstered by a continuing stream of revenue from monthly program guide subscriptions.

By aligning with Arris, Moxi is moving beyond its branded-box retail base but not committing to any one cable or satellite provider. This may be a good recipe for survival.