Time Warner to join Interactive Digital Solutions as equity partner
AT&T, Silicon Graphics and Time Warner join forces to accelerate the interactive age.
STAMFORD, Conn.--(BUSINESS WIRE)--April 25, 1995--Time Warner today agreed to become an equity partner in Interactive Digital Solutions, a joint venture company of Silicon Graphics Inc. and AT&T Network Systems, which provides fully-integrated, multimedia software environments to enable interactive services.
Time Warner will become a 10 percent owner of Interactive Digital Solutions, combining Time Warner's programming and entertainment expertise with AT&T and Silicon Graphics' capabilities in visual computing, networking and interactive communications. Although specific financial terms were not disclosed, part of the transaction involves Time Warner's contribution to Interactive Digital Solutions of intellectual property rights to certain software used in the Full Service Network(TM).
Formed in June 1994, Interactive Digital Solutions plans to incorporate the Full Service Network (FSN) operating system software and FSN applications, such as its video-on-demand and Carousel(TM) navigator applications into its fully integrated multimedia products. The system software will be integrated with hardware from open systems suppliers to create a complete network solution for interactive services. Primary customers are telephone and cable television companies, other broadband network operators and content providers worldwide.
"We believe the interactive software that Interactive Digital Solutions creates will be a compelling product for any company entering interactive television," said Glenn Britt, president of Time Warner Cable Ventures. "We look forward to working with our Interactive Digital Solutions partners as they develop a broad range of operating software and applications that deliver the highest quality interactive services to our customers and other network operators."
"Time Warner shares Interactive Digital Solutions' vision to provide the most interactive and complete array of experiences to the consumer," said Ed Briss, president Interactive Digital Solutions. "Together we are poised to play a key role in the delivery of interactive television and powerful entertainment and information services. This new partnership will enhance our impact, while enabling us to offer applications to customers wanting to test new networks.
Silicon Graphics and AT&T are already primary technology partners in Time Warner's Full Service Network. AT&T Network Systems is providing its high speed ATM switch, the Globeview(R)2000 Broadband Switching System. Silicon Graphics created software for the Full Service Network operating system software, the Carousel navigator, video-on-demand and certain interactive games applications, and supplied Challenge(TM) media servers to store data in the Network Operations Center.
"The growth of interactive services requires three critical elements -- content, technology and distribution," said Tom Jermoluk, president and chief operating officer of Silicon Graphics Inc. "With this partnership, Interactive Digital Solutions becomes the company best suited -- both with resources and expertise -- to actually deploy real solutions that will enable the fantastic and highly visual Interactive Age."
"AT&T's commitment to providing our telephone and cable TV company customers with complete broadband network solutions is further strengthened by Time Warner's involvement in Interactive Digital Solutions," said Gerry Butters, president Global Public Networks, AT&T Network Systems. "This joint venture is primed to offer customers precisely what they need to deliver an exciting set of interactive multimedia services."
Time Warner Inc. is the world's leading media and entertainment company, with interests in magazine and book publishing, recorded music and music publishing, filmed entertainment, broadcasting and theme parks and cable television and cable television programming. Time Warner Cable presently serves 9 million customers in 35 states. After the closing of several previously announced acquisitions the company will serve approximately 11.5 million customers.
Interactive Digital Solutions is a joint venture of Silicon Graphics and AT&T Network Systems. Formed in June 1994 to develop and deliver large-scale, fully-integrated, multimedia software environments for telephone company networks and cable TV systems. This interactive multimedia environment will be integrated with hardware from open systems suppliers to create a complete network solution for interactive services.
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