Cloud-Based TV Service Seeks International Expansion


The Swedish cloud based TV cable service, Magine, has delighted its customers with cheap television access. Channels such as CNN and sports channel are being streamed directly to subscribers television and mobile devices. The company has recently decided that it plans to expand this service across its borders. This is still not good news for North Americans who lie still in wait in the hopes that such a service present itself to combat the outrageous cable operator fees there. The company merely charges $14 a month and provides attractive bundles of channels with it.

Heavy series of funding

Magine has successfully secured $19 million in a series of funding from international investors and that is the main reason why it plans to set up shop overseas. However for now it has set sights towards Spain and Germany. Magines’ structure is that of a internet cable based operator and therefore it only pays a fixed fee to its content provider making the model quite feasible. Magine does not directly deal with any specific hardware and could credit its continued success and place its distance from legal proceedings to this point.

Magine’s chairman, Michael Werner, made a statement about the service the company provides. He stated, “Magine is not just another TV platform, but a totally new way of accessing and consuming content. It is a subscription service that was devised to make viewers come back to watching TV and this is why broadcasters and content providers are very keen to adopt the service. Magine helps them create new forms of monetizing whilst respecting the current rights chain.”

Similar yet different

A similar model is functioning in the United States. The Brooklyn based company, Aereo, has been providing cable services in such a way and at rates cheaper than the traditional cable operators that people are now reconsidering their choices. This has created quite a mess and a hassle for the traditional tv cable service providers. Magine focuses on its core service and that is providing cloud-based computing to stream shows to iOS devices and Samsung TV’s.  In certain ways Aereo and Magine may look similar. However there are certain key distinguishing factors that makes Magine the jewel in the crown.

Magine has licenses from over-the-air broadcast partners whereas Aereo is exploiting on a legal loophole that exists in the cable operator scenario in the U.S. Magine is a cable partner with CNN, Discovery, Eurosport and Cartoon Network. Aereo on the other hand is only relying on Bloomberg TV for the time being.

Not heading to the United States anytime soon

Manesh Kumar, an executive over at Magine, stated,”We feel proving the model in Europe by adding money to the value chain (of which studios are mostly American), would give us a strong case.” He did state that this international expansion will be carried as soon as possible and the service will be available in Spain and Germany. A timeline however is not provided. Also no such plans to set sail to North America were presented. It looks like the company has no definite plans to locate there. Also one of the main reason for avoiding U.S. could be the strong control and influence of the TV cable operators in the hands of the few. With competition like Apple TV, the feasibility for Magine to locate to U.S. does not seem likely yet.


About Author

Usama Batavia

Usama Batavia is an experienced Freelancer in the field of technical and creative writing. He is also a Social Media Expert. With love and devotion towards the world of technology, he has been writing for The Tech Articles ever since and has never looked back.

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