SeaChange International, Inc., a Delaware corporation founded on July 9, 1993,
is an industry leader in the delivery of multiscreen, advertising and premium
over the top (“OTT”) video management solutions headquartered in
Acton, Massachusetts. Our products and services facilitate the aggregation,
licensing, management and distribution of video and advertising content for
cable television system operators, telecommunications companies, satellite operators
and media companies. We sell our software products and services worldwide, primarily
to television service providers including: cable television system operators,
such as Liberty Global, plc. (“LGI”), Comcast Corporation (“Comcast”),
Cox Communications, Inc. and Rogers Communications, Inc.; telecommunications
companies, such as Verizon Communications, Inc., AT&T, Inc. and Frontier
Communications Corporation; satellite operators such as Direct TV and Dish Network
Corporation; and media companies such as Filmbank Media.
Our products and services are designed to empower video providers to create,
manage and monetize the increasingly personalized, highly engaging experiences
that viewers demand. Using our products and services, we believe customers can
increase revenues by offering services such as video-on-demand (“VOD”)
programming on a variety of consumer devices, including televisions (“TVs”),
mobile telephones (“smart phones”), personal computers (“PCs”),
tablets and OTT streaming players. Our solutions enable service providers to
offer other interactive television services that allow subscribers to receive
personalized services and interact with their video devices, thereby enhancing
their viewing experience. Our products also allow our customers to insert advertising
into broadcast and VOD content.
SeaChange serves an exciting global marketplace where multiscreen viewing is
increasing, consumer device options are evolving rapidly, and viewing habits
are shifting. The primary driver of our business is enabling the delivery of
video assets in the changing multiscreen television environment. Through strategic
collaborations, we have expanded our capabilities, products and services to
address the delivery of content to devices other than television set-top boxes,
namely PCs, tablets, smart phones and OTT streaming players. We believe that
our strategy of expanding into adjacent product lines will also position us
to further support and maintain our existing service provider customer base.
Providing our customers with more scalable software platforms enables them to
further reduce their infrastructure costs, improve reliability and expand service
offerings to their customers. Additionally, we believe we are well positioned
to capitalize on new customers entering the multiscreen marketplace and increasingly
serving adjacent markets, such as mobile and OTT. Our core technologies provide
a foundation for products and services that can be deployed in next generation
video delivery systems capable of increased levels of subscriber activity across
multiple devices.
On May 5, 2016, we acquired a 100% share of DCC Labs in exchange for an aggregate
of $2.7 million in newly issued shares of SeaChange common stock and $5.2 million
in cash, net of cash acquired, resulting in a total net purchase price of $7.9
million. DCC Labs is a developer of set-top and multiscreen device software.
The acquisition of DCC Labs in fiscal 2017 enabled us to optimize the operations
of our In-Home business, which developed home video gateway software including
SeaChange’s Nucleus and NitroX products. In addition, the acquisition
brought market-ready products, including an optimized television software stack
for Europe’s Digital Video Broadcasting community, and an HTML5 framework
for building additional user experience client applications across a variety
of CPE devices, including Android TV STBs, tablets, mobile and computer devices.
During fiscal 2018, the In-Home business became the center of engineering and
expanded to include product development for backoffice, advertising and legacy
products. The Poland operation became the prime engineering location and as
of the end of fiscal 2018, was the largest location by number of engineers.
In addition, the engineering efforts were combined and the teams were re-organized
into a single global team in fiscal 2018, which spans a reduced number of locations
globally compared to fiscal 2017. As part of the engineering transition, organizational
improvements were implemented in order to focus on software quality, reliability
and pre-integration, in order to de-risk deployments and improve go-to-market
time for new solutions and existing upgrades. The global engineering team introduced
DevOps practices with a customer-centric view of technology improvements across
all products within the SeaChange solution. Along with operational improvements,
engineering introduced changes to process and workflow which enabled more accurate
effort estimations and velocity tracking. With the introduction of common agile
project methodology across all teams and products, the efficiency of software
engineering increased, which allowed more engineering resources to focus on
innovation and development of industry leading features and enhancements to
existing products as well as new product releases that expand the SeaChange
technology franchise. At the same time, improved efficiency and better allocation
of software developers enabled a more lean and targeted approach to supporting
existing deployments and delivering upon support commitments for legacy products
using a cost-optimized workforce.
Video Platform
SeaChange Adrenalin Multiscreen Video Backoffice Platform. Adrenalin is a comprehensive
software platform that enables service providers to manage, monetize and deliver
a seamless viewing experience to subscribers across TVs, PCs, tablets, smart
phones and other IP-enabled devices. Adrenalin is a modular software solution
allowing customers to gradually adopt new functionality and features to expand
multiscreen television distribution capabilities. We offer our Adrenalin platform
under two deployment options: through onsite software licenses and on a cloud-based
offering through software-as-a-service (“SaaS”). With an onsite
software license model, revenue is derived from perpetual software licenses,
maintenance and support fees and professional services. In a SaaS offering,
we license our product offerings and customers pay us on a monthly recurring
basis based on the total number of subscribers deployed by the customer.
SeaChange AssetFlow Content Management Solution. In today’s multiscreen
viewing environment, programming or advertisements are reproduced with numerous
variants to serve the unique requirements of multiple network types, consumer
devices and geographies. Metadata, such as poster, description and pricing,
associated with the programming, is also managed by the platform. At the point
of content ingest, our AssetFlow software is used to receive, manage and publish
video content for viewing on televisions, tablets, PCs and other consumer devices.
AssetFlow simplifies the increasingly complex tasks of movie and television
program asset tracking, metadata management, and overall content workflow processing.
End-to-End Integrated Platforms. Leveraging the experience gained through our
SeaChange Rave™ offering, we continue to expand our offerings in the integrated
platform service/solution market.
Advertising
SeaChange Infusion Advanced Advertising Platform. As more video content is
served to multiple consumer devices, the ability to generate additional revenue
by inserting advertising across multiple platforms becomes crucial to service
providers seeking to offset content rights costs and reduce subscriber fees
for viewing the content. Infusion enables service providers to maximize advertising
revenue across multiscreen, broadcast, on-demand and OTT viewing and reach their
audiences while viewers watch content across multiple devices.
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