Amid the arrival of HDTV, video-on-demand (VOD), and Google's
Delivering video is trickier than it seems, demanding as much as 10 times the bandwidth of phone and data services. Video is also highly sensitive to error, especially with HDTV. If data is delayed even a couple of seconds, users can see the quality suffer.
BigBand addresses these problems with a set of breakthrough technologies for companies like Cablevision
In freeing up that extra bandwidth, BigBand makes room for its customers offer a plethora of cool services, from video on demand to niche channel packages to songs and even video games.
BigBand's products also help advertisers target their TV pitches. Want to advertise to those people who watch soap operas, or are located in certain parts of the country? Want viewers to get more information about an intriguing ad at the click of a button? BigBand has it covered.
In light of these advantages, it's no surprise that communications companies are rushing into digital video. BigBand's largest customer, Verizon, plans to spend $18 billion by 2010 on its fiber-optic network, and it expects to add about 11 million video customers in that time frame.
BigBand's valuation is about seven times revenues, and its stock price has remained steady since its debut. It seems pricey, but then again, consider BigBand's fourth-quarter surge in revenues, from $26.7 million to $63 million. That's a lot of velocity, and it should keep high-growth investors plenty interested.
Further fiber-fueled Foolishness: