Imagine Communications, Inc., a new digital video technology company, today announced it has developed the broadband industry's most advanced PersonalizedTV platform for system operators, and has completed a $9.2 million first round of venture funding from Carmel Ventures and Columbia Capital.

Imagine's powerful and scalable PersonalizedTV platform allows operators to deliver advanced digital video programming and services that fulfill the essence of PersonalizedTV - giving subscribers content they want, when they want it. Imagine's breakthrough third-generation statistical multiplexing technology and software-based infrastructure solutions cost-effectively enable tremendous bandwidth improvements, enhanced video quality, and customized service offerings such as targeted ads and personalized audio. By implementing its technology in software, Imagine is able to leverage powerful, carrier-grade, off-the-shelf hardware that is available from multiple suppliers. Imagine's technology can be used in both a stored VOD (video on demand) and real-time (switched) environment.

Paul Kagan, chairman/CEO of PK Worldmedia, Inc., said: "VOD is a platform that has been waiting for its moment, in a new era of exploding platforms. The aggressive moves of content owners and broadcasters to widen their distribution patterns are wakeup calls to video operators to boost their streaming capacity. The addition of HDTV to the mix - another emerging platform - increases the competitive pressure on channel expansion."

"We're on the leading edge of a dramatic shift in television delivery from traditional linear broadcast to an on-demand, switched, individualized environment that allows people to watch TV programming on their own schedules and in a more personalized way," said Fred Cary, Imagine's president and CEO.

Cary continued, "This march toward consumer control and flexibility in program delivery imposes new costs and complexities on operators. It's critical that operators cost-effectively maximize bandwidth efficiency and capacity on their networks to ensure the seamless delivery of high-quality video programming at the instant request from a subscriber. We are pleased that Carmel Ventures and Columbia Capital believe in our company, our mission and our ability to deliver on the promise of PersonalizedTV as we make this profound transformation a reality over the coming years."

Imagine Communications was founded last year by Ron Gutman, CTO, and Doron Segev, VP engineering, recognized experts and inventors in the field of digital video. Joining them are Fred Cary, president and CEO; Marc Tayer, SVP marketing & business development; and Doron Mick, VP operations. Together, they create a seasoned management team with a wealth of industry experience, including digital TV and statistical multiplexing pioneers and industry leaders who have decades of experience in developing and deploying successful digital video products.

"Expansion of VOD, HD-VOD, and other advanced services is the key to broadband operators' ability to attract and retain valuable subscribers," said Ori Bendori, general partner of Carmel Ventures. "With Imagine's technology, operators can dramatically improve VOD bandwidth efficiency within their existing infrastructure, while also making new services - such as targeted ads and IPTV - much more viable."

Imagine's initial product focuses on the MPEG-2 VOD market and ushers in a totally different way of using standardized tools in the areas of coding and multiplexing to ensure the best video quality at the lowest bit rate. The company plans to unveil its initial solution at SCTE's Cable-Tec Expo, June 20-23 in Denver.

"The future of television involves customizing the delivery of video and related services based on subscriber demand and demographics," stated Phil Herget, partner at Columbia Capital. "Imagine has developed very unique and advanced technology that enables personalization of TV in a cost-effective and flexible manner. After extensive due diligence, we are convinced there is a large and growing demand for Imagine's solutions, and we're excited to be supporting their launch and anticipated success in this space."