Independent Research Group LLC analyst Erik Zamkoff reiterated his "buy" rating and $15 price target on SeaChange International Inc. (NASDAQ: SEAC), saying buzz created by The Walt Disney Co.'s new Moviebeam movies-on-demand service could spike interest for cable's video-on-demand equipment.
Zamkoff said Moviebeam — a standalone service that would transmit movies over the air to a separate set-top box at a subscriber's home — could cause cable operators to accelerate on-demand rollout schedules. That would be good news for SeaChange, which makes VOD servers.
Zamkoff forecasted limited success for Moviebeam, but estimated that VOD penetration could grow to 95% of digital homes passed by 2007.
