Amazon Web Services (AWS), the preeminent cloud infrastructure provider, just announced that it will acquire Elemental Technologies, a video processing company for multiscreen content delivery, for a reported $500 million in cash.
Founded in 2006, Elemental pioneered the use of software-based encoding, transcoding and video processing for distributing live and on-demand video content over IP networks. The company continues to offer industry-leading services and powers some of the world’s most popular OTT platforms and broadcasters such as the BBC, HBO, and ESPN, just to name a few. It has ten offices around the globe, and will continue to operate as an independent business within AWS, managing its own development, support, sales and marketing teams.
The Elemental blog proudly qualified the acquisition as “building the earth’s biggest video infrastructure!”
Indeed, the acquisition will allow Amazon Web Services to provide a significantly larger range of video services that include some of the industry’s fastest and most advanced processing techniques, with multiple input and output formats, digital rights management and targeted ad placement.
With this acquisition, AWS gains leverage to push the video industry further into the cloud, as it helped do with computing just a few years ago. This is a familiar move to control more of the video value chain (consolidation in the video industry is something we talk about in depth here). The cloud computing company undoubtedly aims to rise to the forefront in the race to bring video content to consumers on any device at any time. It is also good news for Amazon’s own video platform, Amazon Instant Video, as well as its live gaming site Twitch.
Meanwhile, Elemental will benefit from increased financial resources to further expand its business, a key to success in a market that is moving to OTT.
Congratulations to Elemental for its meteoric rise and historic milestone. We’re eager to see where this acquisition takes us!
Amazon Web Services announces acquisition of Elemental Technologies