TiVo’s acquisition of cloud-based services supplier Digitalsmiths

large U.S. pay-TV providers, including DirecTV, Dish Network and Time Warner Cable, said Stephens Inc.’s Tim Quillin. Time Warner Cable agreed to build Digitalsmiths’ Seamless Discovery video recommendations technology into its user interface. The Seamless technology allows users to find and view content across TVs, smartphones, tablets and PCs. The purchase will strengthen TiVo’s hand as it moves to expand into cloud services and moves core set-top DVR functionality such as search and recommendation to the cloud, Quillin said. TiVo also demonstrated network DVRs with a TiVo Cloud service at CES earlier this month. It has been deployed in Swedish cable operator Com Hem’s cloud-based service. The buy of Digitalsmiths will enable TiVo to deploy cloud-based services with operators either independently or with the TiVo interface, TiVo said. Digitalsmiths made its mark with VideoSense tech that enabled searching video by actor, line of dialog, location, genre or product. Digitalsmiths unveiled Seamless Discovery at the 2011 CES as a means for making programming recommendations to users based on viewing habits and directing them to where the content could be found, whether it was VOD, broadcast or cable. Digitalsmiths, which has 61 employees, including 49 in Durham, N.C., will remain based in that state and CEO Ben Weinberger and Chief Operating Officer Matt Perry will continue with the company, TiVo said. Privately held Digitalsmiths has annual sales of about $10 million, Quillin said. Digitalsmiths’ cloud-based service handled 90 million transactions in July, increasing to 150 million by December, Digitalsmiths said. “Digitalsmiths contributes expertise, data opportunities, and approaches that complement and extend TiVo’s extensive work in advanced television to customers seeking search, recommendations, and portability,” said TiVo CEO Tom Rogers in a statement.