Cisco Systems, Inc. has acquired Cupertino, CA-based over-the-top (OTT) cloud streaming platform startup 1 Mainstream, Inc. for an undisclosed price.

Founded in 2012, 1 Mainstream offers an automated platform for distribution of linear and on-demand content to connected devices such as digital televisions, game consoles, tablets and streaming devices.

The company aims to eliminate obstacles for content providers to create compelling, ala carte, HD channels and apps online, catering to what they refer to as the “tipping point” where HD quality video can be streamed to a residence or commercial premises without any reliance on cable and satellite video technologies.

Features of its platform include a reduction in cost and implementation time to customers, with an automated platform that allows easy app creation, publishing, billing, and HD streaming; support for in-App subscriptions along with web-based credit card billing capabilities and advertising support, including pre-rolls; scalability with support for streaming over multi-CDN infrastructure including Amazon Web Services; and support for third party API’s including those provided by Brightcove, Ooyala, Omniture, Google Analytics, Freewheel, and Doubleclick.

Although far from being a household name, 1 Mainstream has partnerships with top companies including Apple, Samsung, Amazon Web Services, Envivio, and YuMe to provide seamless integration of their products to a customer base that includes Sky News, Tastemade, Young Hollywood, Foxtel Play, NowTV (Sky), ACC Digital Network, Screambox, Acacia TV, and the Universal Sports Network.

“1 Mainstream’s technology complements Cisco’s new ‘Infinite’ suite of cloud-powered video entertainment solutions designed to help service providers, broadcasters and media companies to deliver outstanding TV experiences to multiple screens, utilizing one cloud, on any network” Cisco Vice President of Corporate Business Development Rob Salvagno said in a post on the Cisco Platform Blog.

“Today’s acquisition will enable service providers, broadcasters and media companies to make their entire channel lineup and content library available to their customers on the internet via their TV, tablet or connected devices, either within the home or on the go,” the post read.

Smart buy

Cisco’s acquisition of 1 Mainstream is a smart buy for the networking giant as video consumption continues to move away from legacy broadcast television and cable to a new paradigm of on-demand — online consumption.

The deal value adds to Cisco’s already strong video streaming offering, and given the current demand for these service will also assist Cisco’s bottom line when it comes to increasing sales in the market.

Prior to acquisition, 1 Mainstream had raised an estimated $7 million from investors including DCM, Menlo Ventures, BSkyB and Luminari Capital.

The deal is expected to close in the Q2 of Cisco’s current fiscal year according to Mutlichannel News, with 1 Mainstream to join Cisco’s Service Provider Video Software and Solutions Cloud Engineering Group.

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