Move Networks Lays Off About 15% of Workforce

Move Networks made some personnel reductions yesterday associated with a shift from its legacy streaming business to providing a platform for delivering IPTV services. According to a source, the company reduced headcount by about 10-15 percent, leaving the company with 107 employees total.

The personnel cuts come as Move de-emphasizes its streaming media business, a decision that has resulted in some of its larger media customers looking for other vendors to deliver their web videos. Fox has already transitioned off the Move player, adopting Adobe’s Flash for the video technology and Brightcove for video management and distribution. Disney web properties, including ABC and ESPN, will reportedly follow suit, soon transitioning to Flash for their online video. With fewer media customers to serve, employees that were focused on those accounts are being let go.

Instead of focusing on media customers, Move has transitioned to selling a platform for delivering live and on-demand IPTV services, which it is pitching to large ISPs. The company is targeting ISPs in particular that want to roll out video services in markets where they don’t have physical broadband infrastructure. The company already has one such deal, with Cable and Wireless’ international subsidiary, to roll out IPTV services to broadband subscribers in markets where it would be cost-prohibitive to build out a cable plant.

While the layoffs were specifically focused on Move’s streaming media business, the company claims that it remains committed to putting more resources behind its IPTV strategy. In an email, a Move spokesperson writes: “As we advance our business to focus on delivering the next generation of television over the Internet, we are naturally making appropriate adjustments to our team, as part of our planned transition. We continue to seek and invest in the right talent and resources to execute on our commitment to bring consumers a real TV experience on any connected device.”

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