Microsoft Corp. and US West Interactive Services recently purchased an unspecified stake in a video company with offices in both Israel and Palo Alto, propelling the fledgling corporation to international status.
Formed in 1995, VDOnet is already a leader in Internet video technology. It provides the tools and services for individuals and organizations to view and broadcast video via computer and to converse on video-telephones.
US West Interactive Services, part of US West Media Group — which recently merged with Continental Cablevision to serve 26.2 million homes — will use VDOnet technology with its current cable and video capabilities to expand its services.
Similarly, Microsoft will use VDOnet technology to support its own programs for audio business conferencing, live audio and video transmission, and to “complement [each others] efforts and play a vital role in the future of network communications,” said John Ludwig, vice president in the Internet platform and tools division at Microsoft in Washington state.
Asaf Mohr, VDOnet president and CEO, said through this partnership, viewers will be able to watch a child’s football game live from across the country or sit in on a lecture series from London.
Already 150 organizations, such as the American Israel Public Affairs Committee and the National Association of Broadcasters, are using VDO’s technology for their sites on the Internet’s World Wide Web. In April, AIPAC screened major speeches from its annual policy conference in Washington, D.C., which could then be accessed with a computer and modem.
AIPAC’s video Web site was seen by people in 29 countries. In the three weeks following the conference, the site received 60,000 hits. Viewers from San Francisco to Kuwait watched speeches by President Clinton and former Israeli Prime Minister Shimon Peres.
In addition, AIPAC has also web-cast its meetings at the national Democratic and Republican conventions.
“We wanted to make our events accessible to the widest possible audience. We wanted to give people a virtual front-row seat at our convention,” said Toby Dershowitz, director of media relations for AIPAC.
“We wanted to be accessible to our members and activists and the wider audience interested in U.S.-Israel relations.”
Similarly, PBS-TV has screened some of its programs for rebroadcast on the Internet.
Unlike most downloading capabilities on the Internet, which can take several minutes to display a 30-second clip, VDOnet’s technology speeds up and refines the quality of motion video viewed via computer and allows for live screening.
“In simple terms, this is the first time you can do this live with a regular modem,” said Mike Brogan, publicist for VDOnet.
VDOnet’s technology self-adjusts based on a particular computer system’s speed and capacities. This feature means VDOnet’s systems will not become obsolete as computers gain speed and capabilities.
VDOnet’s products include VDOLive Video Server and Personal Server for video broadcasting and VDOPhone for use with regular phone lines. Research and development takes place outside of Tel Aviv, while U.S. marketing is based in Palo Alto.
Shlomo Shalev of the Israel Consul for Economic Affairs office in Santa Clara said that VDOnet is an example of the potential for Israeli-American business collaboration.
“VDOnet made it by themselves,” Shalev said, noting that his office did not play a role in VDOnet’s merger with Microsoft and US West. Both VDOnet principals, Mohr and Gideon Barak, have done business in Silicon Valley, he added, and “know their way around.”
For Israeli entrepreneurs who don’t have established connections in the United States, Shalev acts as a matchmaker between start-up companies and venture capitalists. In addition, he promotes Israel as an investment opportunity. He points to the establishment of a Sysco Systems operations office in Israel as an example.
“I couldn’t take credit for VDOnet’s success,” Shalev said. “We’re just trying to help other companies do the same thing.”