The move to multi-platform content delivery has made video transcoding a hot area the digital video technology space. Not only has there been a great deal of M&A activity in this area but transcoding companies have also attracted significant investment from venture capitalists and private equity firms.
Here’s a quick run-down of some of the recent transcoding deal:
- In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012
- In April 2012, audio processing specialist Wholer bought transcoding provider RadiantGrid in a move that the company said will accelerate its move into file-based operations
- Envivio had an initial public offering led by Goldman Sachs
- Envivio closed a $16.5m funding round in January 2012, bringing the total raised to $95.1m
- PE firm Thoma Bravo bought out Telestream in December 2011
- Telestream bought fellow transcoding vendor Anystream in September 2011
- Cisco bought Inlet Technologies for $95m in February 2011
- Elemental Technologies closed a $7.5m fundraising round in 2010, bringing the total raised to more than $14m
- RGB Networks bought transcoding vendor Ripcode in 2010
Today, in a move that could have ramifications for many vendors and end users in the digital media space, Internet giant Amazon announced that it is rolling out a beta version of its “Amazon Elastic Transcoder.”
Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”
Pricing starts at $0.015/minute for SD content, and $0.030/minute for HD content with no minimums or monthly commitments, and Amazon says that AWS customers will be able to transcode up to 20 minutes of SD video or 10 minutes of HD video each month free of charge as part of its AWS Free Usage Tier.
According to Amazon, the Elastic Transcoder service manages all aspects of the transcoding process transparently and automatically, provides complete scalability for big jobs, and lets users pay for only the services they need when they need them. The company also says content will be stored secure on its system.
To help potential users better understand the serviced, Amazon is hosting an Introduction to Amazon Elastic Transcoder webinar on February 27, 2013 at 10:00 AM PST.
It remains to be seen how this new service from Amazon will impact the established technology vendors in this space, and/or whether this service will be adopted by professional broadcast and post-production end-users. Nevertheless, this appears to be a significant development that makes cloud-based IT technology to an increasing number of end-users.
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