He said that it would be the first step in creating a new company and technology platform to capitalize on the surge in online TV consumption.
Speaking to Reuters, Winnick said the company, which will keep the name Qello, is aiming to provide the technology for video streaming services. It has approached Viacom and MGM Studios as content partners.
He wants to broaden the offering beyond television to enable companies in the music, healthcare and education industries to launch the streaming platform.
Qello, which was acquired for an undisclosed sum, will be the backbone technology for the new company, Winnick said. At the moment it just runs Qello Concerts, and provides the tech platform for Acorn TV, an online streaming service for British shows owned by RLJ Entertainment.
He is betting that people will cut the pay TV cord, pushing the total number of cord-cutting households to 7.4 million.
Winnick’s path will not be easy as new players in streaming technology are popping up every month.
Winnick built Global Crossing into a $48 billion company and sold shares worth $734 million before it went bankrupt in 2002.