Microsoft Startup Zone

Akimbo Systems is one of the first companies to deliver DVD-quality video programming to television by using a broadband Internet connection. The Akimbo Service lets consumers choose and download video programs based on their preferences.

Opportunity & Innovation

While there is a vast amount of video programming available for consumers, it is not readily accessible through cable and satellite services. More than 20 million homes are already using a broadband Internet connection—a number that Nielsen Netratings estimates will reach 50 million by the end of 2004. The Akimbo solution takes advantage of Internet broadband, new compression technologies, and digital rights management (DRM) systems to make video programming available on television. The Akimbo Service offers one of the nation’s largest video-ondemand services, with more than 10,000 different programs available. Employing a progressive business model, Akimbo works directly with service providers to host and deliver content, providing new distribution channels for movies, films, music video, specialty programs, and more.

By selecting Microsoft technologies to build its solution, Akimbo reduced development time by a full six months. In addition, the technologies required fewer software engineers, keeping resource costs to a minimum. The solution also takes advantage of the Microsoft® Windows Media® 9.0 DRM system to protect its video content. The Akimbo Service became available to consumers in summer 2004. The company has already signed with over 35 content providers, and the list continues to grow. While video providers typically get 30–40 percent of the margins on video sales, the Akimbo Service enables providers to keep the majority of their sales revenue—the best available profits for distributed television today.

The Yoga Learning Center, an online yoga studio, is taking advantage of the Akimbo Service to provide a virtual video library to its customers. The entire cable video-on-demand (VOD) system usually offers 500–2,000 total hours for all video providers, most of whom have access to only 20–40 hours of storage. With the Akimbo Service, Yoga Learning Center can offer its entire library for download. The Akimbo system will offer over 7,000 hours of programming, growing to about 50,000 hours by the end of 2004.

Microsoft Partnership

In addition to providing instrumental technology support, the Microsoft partnership has helped Akimbo broaden its relationships with channel partners and customers. According to Andreas Stavropoulos, Managing Director of Draper Fisher Jurvetson, “The Microsoft partnership has opened a lot of doors for Akimbo in their efforts to sign up content providers. The implied Microsoft endorsement of Akimbo’s digital rights management approach (based on Microsoft DRM software) significantly increases the comfort level of potential partners for Akimbo.”

Microsoft’s robust technology foundation helps Akimbo maintain a competitive edge in the market. “The Microsoft partnership was a strong endorsement that differentiated Akimbo from competing companies,” continues Stavropoulos. “It served as a signal of the promise of Akimbo’s technology and underlined the ties with the Microsoft Windows® CE operating system.”

Akimbo is a member of the Microsoft Empower Program and the Windows Embedded Startup Program (WESP). The Akimbo solution was featured in a Windows Media Format announcement at the National Association of Broadcasters (NAB) convention. The company is backed by Silicon Valley investment firms Draper Fisher Jurvetson, Sprout Group, and Zone Ventures.