[Bridging_the_digital_divide] Discovery Education buys AIMS Multimedia

Tue Aug 17 10:53:24 EDT 2004

Discovery Education buys top competitor
  By Corey Murray, Assistant Editor, eSchool News
  August 17, 2004

  Discovery Communications has acquired AIMS Multimedia, one of its 
largest competitors in the instructional video market, for an 
undisclosed sum. Company executives say the deal, announced Aug. 16, 
will expand the content and services available to educators through the 
cable programmer's rapidly growing digital library--making its newly 
formed Discovery Education business unit the largest distributor of 
streaming media content to K-12 schools in the United States.

  "The acquisition of AIMS Multimedia solidifies Discovery's position as 
a leader and innovator in the world of digital video-based learning," 
said Judith McHale, president and chief executive officer of Discovery. 
"Discovery Education will continue to lead the industry with the very 
best educational video content and online services that engage and 
excite students and improve their academic performance."

  With more than 1 billion subscribers and 60 networks worldwide, the 
global media provider, headquartered in Silver Spring, Md., is perhaps 
best known for its brand of explorative, offbeat television programs, 
such as "Trading Spaces" and "Monster Garage." But in schools, 
Discovery is often recognized for another attribute: its proven ability 
to raise student achievement.

  Discovery reaffirmed its educational roots with last year's purchase 
of United Learning. The Evanston, Ill.-based company, known for its 
popular "unitedstreaming" video-on-demand (VOD) service, was acquired 
to bolster Discovery's own vast digital library with its thousands of 
hours of educational video clips. The acquisition of United Learning 
also gave Discovery another medium through which to supply its content: 
streaming video.

  Discovery streams the short, teacher-selected snippets to schools in 
exchange for a yearly fee. The videos, proven to bolster student 
achievement in math, science, and social studies through two 
independent studies (see "Video on demand boosts students' math 
scores") have become a hot commodity in schools, as teachers search for 
ways to meet the rigorous testing requirements of the No Child Left 
Behind Act (NCLB).

  So far, more than 26,000 schools have adopted the service, which 
Discovery will supply for free to one non-subscribing school in every 
United States school district during the coming school year as part of 
its "VOD Pass" initiative.

  With the addition of AIMS Multimedia, Discovery will increase its 
presence in U.S. schools "by a significant margin," according to Steve 
Sidel, executive vice president for the company's education division.

  Sidel said Discovery is excited about the merger because it will 
enable the company to grow by expanding the breadth of its services 
while continuing to provide educational videos that are correlated to 
state standards.

  In 2000, AIMS introduced DigitalCurriculum.com, an internet-based 
online streaming video-on-demand library. Seen by many as 
unitedstreaming's only substantial competition, the online subscription 
service offers access to more than 8,000 different video images for use 
in the classroom.

  Coupled with unitedstreaming's popular VOD service, the latest deal 
gives Discovery access to more than 35,000 educational-style, 
standards-based video segments spanning all subject areas from 
kindergarten through 12th grade, including social studies, science, 
history, geography, health, language arts, and math, the company said.

  "Video is special," added Sidel, because it enables educators to 
exploit those often-rare "teachable moments," inviting students to 
visualize key concepts and see those concepts applied in real-world 
situations.

  Discovery said it has no immediate plans to alter the services 
provided by either company, so schools needn't worry about the fate of 
existing contracts heading into the new school year.

  Over the next several months, Discovery will evaluate the two services 
and decide how best to combine their resources to meet the evolving 
needs of its school customers, said David Pendery, a spokesman for 
Discovery Education.

  The landmark deal was inked despite a burgeoning legal battle that 
some say could derail schools' ability to use streaming media 
applications in the classroom.

  Acacia Research Corp. of Newport Beach, Calif., recently sent a second 
wave of letters to U.S. colleges, claiming that it owns the patent for 
the technology that enables streaming media. The letters reportedly ask 
users to pay up to a 2-percent royalty for every video streamed or stop 
using the technology immediately. (See " Acacia to schools: Pay now or 
we sue")

  Though Discovery contends it has yet to receive notice from Acacia 
regarding its own streaming media applications, company executives say 
they are monitoring the situation and see no reason the skirmish should 
keep Discovery from providing the service to its customers.

  "We tend not to comment on things going on in the legal venue," Sidel 
said. "But this is not something that is slowing us down." He said 
Discovery will continue to work with its customers to assure them their 
interests are well-protected.

http://www.eschoolnews.com/news/showStoryts.cfm?ArticleID=5221
---

Jason Barkeloo
President
TouchSmart Publishing
http://www.touchsmart.net
t: 513.225.8765
f: 206.666.4856

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