NDS Group (Nasdaq: NNDS) is maintaining its momentum of recent weeks with the long-awaited announcement today that German pay-TV operator Premiere will deploy its VideoGuard content protection solution to secure pay-TV satellite platforms in Germany and Austria. NDS did not disclose the size of the contract, but it is a major achievement for the company.
Oscar Gruss analyst Ziv Tal said, "The contract represents a victory for NDS over its largest rival Kudelski. NDS has already supplied Premiere with middleware and the latest deal is for conditional access systems. Kudelski will fight this tooth and nail."
Tal added that Premiere recently suffered losses on its broadcasts of the German Bundesliga, after its encryption system was circumvented by hackers. According to Tal, industry sources estimate the annual loss in revenue to Kudelski following NDS's win at $30 million from 2011 onwards.
NDS is a subsidiary of News Corp. (NYSE: NWS; ASX: NCP), which owns 22.7% of Premiere. Tal adds, "The News Corp connection always helps. Nonetheless, it should be remembered that, a few months ago, DirecTV of the US extended its contract with NDS through 2013, even though News Corp sold its stake in the company."
NDS fell 1% in early trading on Nasdaq today.
Published by Globes [online], Israel business news - www.globes-online.com - on April 15, 2008
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