Carl Gressum,senior analyst at Ovum comments on: BSkyB acquires Amstrad: what is wrong with the ODM model?

0 Comments | M2 Presswire, July, 2007

M2 PRESSWIRE-31 July 2007-OVUM: Carl Gressum,senior analyst at Ovum comments on: BSkyB acquires Amstrad: what is wrong with the ODM model?(C)1994-2007 M2 COMMUNICATIONS LTD RDATE:31072007 Today BSkyB announced a GBP125 million bid for Amstrad, the set-top box vendor. BSkyB is a key customer of Amstrad, and has proven to be a profitable business.

H2 2006 revenues were GBP40.6million, and profits GBP10.5 million. The acquisition is expected to increase innovation and accelerate development of new products. "There is a wealth of set-top box vendors, and BSkyB uses a mix of these providers for its Sky-branded set-top boxes. It works for Canal , it works for PCCW and it works for Premiere - why does it not work for BSkyB?" "From a business point of view it...