Interactive TV: PlayTV acquires Pixel Technologies

US digital entertainment firm PlayTV has acquired Pixel Technologies to form PixelPlay Inc. The new company will offer "a unique blend of branded entertainment content and advanced technology solutions never before available to digital subscribers."

Ron Chaimowitz, PlayTV's CEO and founder, will head up the new company.

"We are very excited about this acquisition which will further our strategy of delivering superior technology and service as well as branded entertainment to service providers," he said.

"Our goal in combining with Pixel Technologies is too become the clear leader in content, technology and distribution and to simply raise the standard of interactive television games across the board."

Pixel Technologies president and CEO, Ramy Weitz, will become executive chairman of PixelPlay. "PlayTV has built a high profile catalogue of entertainment brands into its portfolio and has been shaped by a game-industry veteran who is experienced in building successful interactive entertainment companies," said Weitz.

"Our entire team is elated and eager to start contributing our expertise in digital game technology which will foster new and exciting offerings with mass appeal."

According to PixelPlay, interactive TV, mobile and broadband games are high growth markets and revenue is forecast to reach $21 billion by 2010. The company currently reaches more than 15 million households and now expects this to increase to more than 40 million by 2006, thanks to the acquisition of rights to brands such as Hasbro, Atari and Tribune Media.

"By combining the branded content assets, technology and distribution of both PlayTV and Pixel Technologies, PixelPlay will emerge as the leading provider of entertainment and state-of-the-art technology for emerging platforms including interactive television, iPTV, Internet and mobile devices worldwide," said a representative.

PixelPlay will base its headquarters in New York, with additional offices in London and Tel Aviv.