Cable Show 2009

NDS and Cox Find tru2way Compatibility

| Mar 25, 2009 | Digital Media Infrastructure | Show Update

| Analyst: Ron Westfall

Current Perspective: Positive Vendor Importance: Moderate Market Impact: Moderate

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Event Summary

March 23, 2009 –- NDS, a provider of technology solutions for digital pay-TV, announced that it has been chosen to implement an enhanced suite of interactive applications for Cox Communications on their tru2way set-top boxes (STBs). The applications are designed to offer a wide range of entertainment and information services for subscribers including: integrated telephony services, email, news, sports, weather, games, movie listings, Mosaic video channels, widgets, horoscopes and lottery results, as well as a customer care facility.

Analytical Summary

• Current Perspective: Positive on Cox Communications selecting NDS to implement an enhanced suite of interactive applications for Cox on its tru2way set-top boxes (STBs). The Cox endorsement demonstrates that privatization has not caused NDS to miss a beat in continuing to land high-profile top-tier customer wins and that NDS commands the R&D resources and expertise to meet the burgeoning demands of major cable operators, such as Cox, to support customized applications to offer subscribers.

• Vendor Importance: Moderate to NDS as NDS needed to land a high-profile cable customer, such as Cox, to boost overall sales and marketing efforts on behalf of its cable operator-specific application development capabilities, including user interface (UI) and electronic programming guide (EPG) ones. This shows NDS can meet the specific technical requirements of cable operators in areas such as tru2way technology, complementing NDS’ already proven track record in vital pay-TV segments such as its VideoGuard conditional access (CA) and digital rights management (DRM) technology.

• Market Impact: Moderate on the overall digital media infrastructure (DMI) market and the content distribution systems (CDS) segment, including tru2way applications for STBs, since NDS already possesses an extensive customer base in the overall pay-TV space, which the Cox endorsement of NDS’s UI custom design for tru2way applications reinforces. At the least, NDS rivals will need to reiterate marketing efforts in the area of tru2way application development efforts.

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Current Perspective

Competitive Positives and Concerns

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