Harmonic (NASDAQ:) Inc. HLIT recently announced that it has joined forces with a cable television provider — Medianet — to deploy its EyeQ content-aware encoding (CAE (NYSE:)) solution across Maldives to enhance the latter’s video streaming service delivery. Markedly, the EyeQ technology reduces streaming congestion on broadband networks by up to 50% on the back of artificial intelligence-based algorithms.
The innovative solution is primarily known for its best-in-class video capabilities. The deployment comes as a savior especially at a time when majority of the cable operators are gradually migrating from traditional encoding methods toward sustainable content delivery solutions to stay competitive in the global market.
As a leading pay TV provider in the Maldives, Medianet caters to a wide base of clientele with an exceptional entertainment experience. The company has a diverse portfolio of reliable and affordable TV content, news and programs with an efficient delivery system. Originally formed in 2005, Medianet was created from the merger of J-sat Communications and Maldives CableNet.
Apart from addressing the entertainment requirements of Maldivians, it supports small and medium-sized enterprises to back local businesses, while securing regional partnerships. It also launched a value-added service, Open MiTV, a multi-screen entertainment platform and offers more than 95 standard definition channels with a proven track record in the infotainment industry.
Presently, content providers are required to deliver high-quality video on devices while keeping their operational costs low, and Harmonic’s EyeQ technology is the one-stop shop solution. The EyeQ CAE enables operators to deliver high video quality of its over-the-top multiscreen services and adjusts to the human visual system for a superior viewing experience. It functions at lower bitrates, especially over wireless connections such as Wi-Fi or 4G and delivers its bandwidth savings via standard Advanced Video Coding codec without any hassle of upgrading its client devices.
It is worth mentioning that high definition videos have high demand, and with the Harmonic EyeQ solution Medianet will be able to fulfill the consumer requirements with reduced buffering experience in a capex-friendly way. Impressively, the integration of the EyeQ technology into Medianet’s video delivery services is likely to minimize the latter’s Content Delivery Network costs while future-proofing its video delivery workflow with an improved viewing experience. Driven by these avant-garde characteristics, the solution is seen as a major investment as it can be extended to other delivery platforms and cost-effectively deployed while enhancing revenues in the long run.
Harmonic currently has a Zacks Rank #3 (Hold). It has a long-term earnings growth expectation of 15%. The stock has gained 4.9% compared with 15.3% growth of the industry in the past three months.
Some better-ranked stocks in the industry are Plantronics (NYSE:), Inc. PLT, Turtle Beach (NASDAQ:) Corporation HEAR and Acacia Communications (NASDAQ:), Inc. ACIA. While Plantronics and Turtle Beach sport a Zacks Rank #1 (Strong Buy), Acacia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Plantronics delivered a trailing four-quarter positive earnings surprise of 568.2%, on average.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 81.5%, on average.
Acacia delivered a trailing four-quarter positive earnings surprise of 10.4%, on average.
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