Ericsson splitting media business into broadcast and solutions units

Ericsson HQ (ericsson)

Ericsson unveiled its new business strategy that will include splitting its media business into two separate units: Broadcast and Media Services and Ericsson Media Solutions.

The move is being done to “create a stronger operational focus” while the segment explores strategic opportunities.

“Video traffic today constitutes over 50% of mobile data traffic globally, and is forecast to grow to 75% by 2022. We have built a strong and competitive portfolio and we have become a world leading supplier of TV & Media products and services,” said Ericsson in a news release.

Sponsored by Dell Technologies

Whitepaper: How to Elevate Your Content Delivery Workflows With Dell EMC PowerScale

Learn how Dell EMC PowerScale helps meet surging viewer demand while reducing costs with a single centralized platform for the ingest, processing, and delivery of the content your viewers love.

According to The Wall Street Journal, part of Ericsson’s new strategy could entail selling off part of its business helping broadcasters with video transmission.

RELATED: VR Industry Forum launches with Sony Pictures, Ericsson, NAB, others on board

As the report points out, Ericsson is exploring “strategic opportunities” for its Media business. That division could be due for some impact as SVOD services eat into demand for Ericsson’s ability to offer VOD and DVR solutions.

The shift, which is impacting other Ericsson business segments including networks and managed services, is coming as the Sweden-based tech giant looks to recover its market position.

RELATED: Ericsson unveils turnaround plan, will book as much as $2.4B in charges

"For some time Ericsson has been challenged on both technology and market leadership and the group strategy has not yielded expected returns. In our strategy review we have listened carefully to customers around the world and made an in-depth analysis of our portfolio and performance. To enable us to immediately take action and move with speed in execution we are today outlining our path to restoring profitability and to lead with innovation and best in class solutions in areas we have decided to focus on," said Börje Ekholm, Ericsson president and CEO in a statement.


Suggested Articles

WarnerMedia scored a key HBO Max distribution deal with Comcast just as it launched in May. Nearly six months later, there still isn’t an app.

Peacock, NBCUniversal’s recently launched streaming video service, is rolling out 20% discounts on annual Premium subscriptions for Black Friday.

How can we defend ourselves? Mostly, it’s a matter of common sense.