Posts Tagged ‘brightcove’

Telstra Buys Online Video Platform Ooyala for $360 Million Equity Value

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Aug 13 2014

Telstra, Australia’s largest telecommunications provider, has paid $270m to purchase 75% of online video platform provider Ooyala. When the deal closes, Telstra will own 98% of Ooyala.

Telstra previously invested $61m over two funding rounds to acquire 23% of Ooyala. In June 2012, Telstra participated in a $35m fundraising round. In December 2013, Telstra invested an additional $43m in Ooyala. 

The deal values Ooyala at $360m, which slightly overstates the cash price incurred by Telstra since its actual cash outlay was $331 million ($270m + $61m).

$360m is a strong valuation for Ooyala, which has 330 employees and is forecasting revenue of $65m for calendar year 2014.  It’s also a strong valuation in the context of an analogous public comparable Brightcove, which trades on the NASDAQ.

Brightcove’s stock presently trades at an equity value of approximately $200 million, though Brightcove is meaningfully larger than Ooyala on a revenue basis. Assuming similar gross margins as Brightcove, these data points would suggest Ooyala has yet to reach profitability.  However, it would appear prioritizing growth over profitability was a beneficial strategy since the implied revenue multiple is 5.5x and the cash-on-cash return to investors was approximately 4.4x (as detailed below).

Ooyala was founded in 2007 and raised approximately $122 million before the acquisition by Telstra.  $61 million of this amount was from Telstra itself; the remaining $61 million included participation from Ropart Asset Management, Amazon Web Services, Sierra Ventures, Rembrandt Venture Partners, The CID Group, ITOCHU Technology Ventures, Motorola Mobility Ventures, and EDB Investments Pte. Ltd.

Ooyala is the first investment by Telstra’s Global Applications & Platforms group, whose mission is to create “long-term global growth in markets that are adjacent to Telstra’s core business, where software disrupts traditional business models.”

In announcing the transaction, Ooyala’s CEO Jay Fulcher posted an open letter to Ooyala employees, which enthusiastically outlines the rationale for the transaction and discussed the future market opportunity.  “Our opportunity is enormous” said Fulcher. “The market for the technologies and services we provide is will be [sic] worth tens of billions in the next few years. To win requires a heavy investment in people, infrastructure, R&D and technology.”

The transaction will require US regulatory approval, though is expected to close within 60 days.

Ooyala will operate as an independent subsidiary of Telstra, retaining both its brand and management team.

In 2013, Telstra generated more than $AUD 26 billion in revenue.

.

.

Related Content:

Press Release: Telstra to acquire leading video platform company Ooyala

An open letter to Ooyala employees from CEO Jay Fulcher

Press Release: Ooyala Receives $43 Million Investment From Telstra To Accelerate Adoption of Its Market-leading Video Analytics

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

Brightcove Revenue Up 15% in Q2 2014, But Soft Guidance Crushes Stock

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Jul 25 2014

Online video delivery specialist Brightcove announced  its revenue for the second quarter of 2014 was $31 million, up 15% from the same period a year ago, and down slightly versus the previous quarter.

Although Brightcove’s top-line results were better than the upper end of the company’s previous guidance, it posted a Q2 net loss of $4.3 million, versus a net loss of $3.5 million last year and a net loss of $4.8 million during Q1.

The company also revised down its guidance for the full year, due in part to the loss of Rovio, the company behind the Angry Birds franchise and one of Brightcove’s largest European customers.  During the first half of 2014, Rovio represented 3.8% of Brightcove’s total revenue and a little less than 15% of its total video stream volume.

Investors were quick to react to the revised forecasts, driving the company’s stock down almost 40% to less than $6.50.  Brightcove had traded as high as $24.80 shortly after its IPO in early 2012.

On a positive note, the company said its revenue from media customers grew at 31% on a year-over-year basis.  “While we continue to see a broad market opportunity and strong demand for our products across a number of industries, we are seeing positive results from our increased focus on the media vertical,” said Brightcove CFO Chris Menard.

Brightcove also said it experienced a 7% year-on-year increase in “premium customers” in the quarter. Brightcove defines premium customers as those who are on annual subscription contracts for the enterprise and pro versions of its “Video Cloud,” “Once,” and “Zencoder” product offerings.

Revenue from premium customers during Q2 was $28.4, up 18% versus the same period a year ago, and flatversus the previous quarter.  The company said it had 1,833 premium customers, or 30.6% of its total customer base, at the end of the second quarter.  This represents an increase of 7% versus the same period ago, and an increase of 0.5% versus the previous quarter.

Subscription and support revenue in the quarter was $29.9 million, or 97% of total revenue, up 17% versus last year, and up approximately 2% versus last quarter.

Professional services revenue was $1 million, down 19% versus last year, and down 41% versus last quarter.

 

On a geographic basis:

  • North America accounted for $18.5 million, or 60% of total revenue in the quarter, compared to $15.8 million, or 59% of revenue last year, and $18 million, or 58% of total revenue last quarter

 

  • Europe contributed $7.7 million or 25% of total revenue in the quarter, compared to $6.5 million, or 24% of revenue last year, and $8.6 million, or 27% of total revenue last quarter

 

  • Japan contributed $2 million, or 6% of total revenue in the quarter, compared to $1.5 million, or 6% of revenue last year, and $1.9 million, or 6% of total revenue last quarter

 

  • Asia Pacific (excluding Japan) contributed $2.5 million, or 8% of total revenue in the quarter, compared to $2.9 million, o or 11% of revenue last year, and $2.3 million, or 7% of total revenue last quarter

 

 

On a segment basis:

  • Digital marketing and enterprise customers was $17.7 million, or 57% of total revenue in the quarter, compared to $16.7 million, or 62% of revenue last year, and $18.3 million, or 59% of total revenue last quarter. The company said that revenue from digital marketing and enterprise customers grew 6% on a year-over-year basis

 

  • Media revenue was $13.3 million, or 43% of total revenue in the quarter, compared to $10.2 million, or 38% of revenue last year, and $12.7 million, or 41% of total revenue last quarter. The company said that revenue from media customers grew 31% on a year-over-year basis

 

Gross margins for the quarter were 66%, flat on a percentage basis versus the same period a year ago and up from the 64%recordedduring the previous quarter.  On a non-GAAP basis (excluding stock-based compensation and amortization of acquired intangible assets) gross margins for the quarter were 68%.

Brightcove ended the quarter with 401 employees (a decrease of 10 employees from the preceding quarter), a total customer base of 5,995 (a decrease of 131 versus the preceding quarter), and cash and cash equivalents of $20.8m, down from $21.4m at the end of the first quarter of 2014.

 

Guidance Lowered for Full Year 2014

Brightcove now says it expects it to post a full year 2014 non-GAAP operating loss in the range of $6.5m to $7.5m on revenue in the range of $122m to $123.5m.  The Company had previously projected full year revenue in the range of $126m to $130m, and a non-GAAP operating loss in the range of $5m to $7m.

The company says its losses are likely to continue through the fourth quarter of next year, when it expects to achieve positive non-GAAP operating income.

“While we delivered solid financial results relative to our guidance, we also faced headwinds that have negatively impacted our outlook for the second half of 2014”, said Brightcove CEO David Mendels.

 .

.

Related Content:

Press Release: Brightcove Announces Financial Results for Second Quarter 2014

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

2014 Big Broadcast Survey (BBS) Reports Now Available

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Jul 15 2014

After months of data collection, analysis, and visualization, we have now completed work on the 2014 Big Broadcast Survey (BBS). Reports from this study have now been published and are available from Devoncroft Partners.

If you’re not familiar with the BBS, it’s the most comprehensive annual study of technology end-users in the global broadcast industry. Nearly 10,000 broadcast professionals in 100+ countries participated in the 2014 BBS, making it once again the largest market study of the broadcast industry.

BBS reports have been designed to help readers improve their strategic decision-making, customer engagement, marketing strategy, product planning, and sales execution.  BBS reports are also used frequently for M&A-related activities by both buyers and sellers.

.

Three types of 2014 BBS reports are available:

  • 2014 BBS Global Brand Reports:  provides deep insight into how each more than 100 broadcast technology suppliers (see full list below) are perceived by market participants, along with comprehensive benchmarking of broadcast technology vendors on a wide variety of metrics.

 

  • 2014 BBS Product Reports:  provide detailed information from buyers, specifiers, and users of broadcast technology products in 31 separate categories (see full list below)

 

  • 2014 BBS Global Market Report: provides detailed information about industry trends, major projects being planned, products being evaluated for purchase, current and future plant infrastructure, broadcast technology CapEx budgets, and planned deployment of new technologies including 4K, Connected TV, and Social TV.

.

 

If you would like information about these reports and how they can help your business, please get in touch.

 

In addition to these paid-for reports, we will also be publishing highlights from the 2014 BBS on the Devoncroft website.  These articles will be posted on a semi-regular basis, so please check back often.

To receive posts when they are published, just enter your email in the box in the upper right-hand corner of the page.

 

The tables below show the product categories and broadcast technology vendor brands covered in the 2014 BBS.

 

 Product Categories Covered in the 2014 BBS:

2014 BBS -- Product Categories Covered in the 2014 Big Broadcast Survey

 

 

Broadcast Technology Brands Covered in the 2014 BBS:

 

2014 BBS -- All Brands included in 2014 BBS

.

.© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

 

.

 

 

Broadcast Vendor M&A: Dalet Acquires AmberFin

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results, SEC Filings | Posted by Joe Zaller
Apr 06 2014

MAM and newsroom specialist Dalet Digital Media Systems has signed a definitive agreement to acquire ingest transcoding, and broadcast workflow specialist AmberFin.

Financial terms were not disclosed.

The seller was UK-based private equity firm Advent Venture Partners, which spun AmberFin out of Snell & Wilcox in 2009, and subsequently re-invested in the company in a 2010 funding round.

According to public records, for the fiscal year ended March 31, 2013 AmberFin posted a net loss before tax of £1.18m on revenue of £4.58m.

Once the deal closes, the combined company will have revenues in excess of $55m.

Datlet says the acquisition of AmberFin significantly broadens the company’s product offerings, and “affirms the company’s dominance in MAM and media workflow management by creating end-to-end solutions that include comprehensive MAM capabilities along with state-of-the art image processing, media transcoding and distribution.”

“This acquisition allows us to offer the industry the most advanced level of workflow options.” said Dalet CEO David Lasry. “AmberFin has been at the forefront in mastering media, including transcoding and video quality control. The company has spearheaded many widely adopted industry standards such as MXF and AS-02. Its talent and expertise directly complement Dalet’s strengths in enterprise MAM-driven solutions. By melding our resources and innovative technologies, we can enrich both the Dalet and AmberFin products to offer the most complete and forward-thinking solutions for content providers to optimize their human resources and media assets. From ingest through multiplatform delivery, operators in News, Sports and Programming will reap tremendous efficiencies and productivity by applying our combined technologies.”

“I am extremely proud of the AmberFin team and its accomplishments. Our award-winning, cutting-edge products are used by prominent broadcasters, content owners and post-production houses around the globe,” comments Jeremy Deaner, CEO of AmberFin. “It’s very gratifying to know that by joining with Dalet, we can together leverage our best-in-class technologies to deliver an outstanding array of solutions that will meet the challenges of the constantly changing digital media landscape.”

 

Transcoding Consolidation Continues

Dalet’s acquisition is the latest in a series of deals and product announcements in the transcoding space.  As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

  • In January 2013, Amazon unveiled 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.”

 

  • 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

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

 

 

 

Related Content:

 

Press Release: Dalet Acquires AmberFin – Purchase Strengthens Dalet’s Leadership in MAM

AmberFin Closes Funding Round — Fourth Transcoding-Related Transaction in Past Few Months

.

.

© Devoncroft Partners 2009 – 2014. All Rights Reserved.

.

.

Ranking Broadcast Technology Vendors Part 2 – The 2013 BBS Net Change of Overall Brand Opinion League Table

broadcast industry technology trends, broadcast technology market research, Broadcast Vendor Brand Research, market research, Top Broadcast Vendor Brands | Posted by Joe Zaller
Aug 05 2013

This is the sixth in a series of articles about some of the findings from Devoncroft’s 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. 

 

Previous articles about the 2013 BBS discussed the most important broadcast industry trends, how the relative commercial importance of broadcast industry trends have changed over time, where money is currently being spent in the broadcast industry, broadcast technology products being evaluated for purchase in 2013 and 2014, and the 2013 BBS Overall Brand Opinion League Table.

 

This is the second in a series of posts about how broadcast technology vendors were ranked and benchmarked on a variety of metrics by the respondents to the 2013 BBS.

The first post in this series described the 2013 BBS Overall Brand Opinion League Table, which shows how 2013 BBS respondents ranked broadcast vendor brands.

This post looks at how the global sample of broadcast professionals who participated in the 2013 BBS ranked their Net Change of Overall Opinion of the 151 broadcast technology vendors we covered in the study.

 

Net Change of Overall Opinion

While it’s good news for any vendor to achieve a good “overall opinion” ranking, this metric is somewhat one-sided because it relies solely on the positive opinions of respondents.

In order to get a better understanding of how broadcast technology vendor brands are perceived, it is necessary to look at both the positive and negative opinions of brands. It is also necessary to take into account how these opinions have changed over time.

Once this information has been collected, we use it to create the Net Change of Overall Opinion Ranking, a metric that demonstrates which brands are perceived as getting better, and which are in decline, on an overall basis. Net Change in Overall Opinion provides a more balanced view each brand because it takes into account both the positive and negative perceptions of brands, along with how these opinions have changed over time.

An explanation of how these results were calculated can be found at the end of this article.

The complete list of vendor brands covered in the 2013 BBS is here.

 

The Net Change in Overall Opinion findings from the 2013 BBS are shown below in two ways:

  • An overall industry “league table” that shows the 30 highest ranked vendors for the metric “Net Change of Overall Opinion.”  The data in this chart is broken out globally and regionally.

 

  • An analysis of the “frequency” of appearance of each vendor in the Net Change of Overall Opinion league table

 

The top 30 ranked brands for Net Change of Overall Opinion are shown below for both the global sample of all respondents as well as for all respondents in each of the geographic regions.

When reading these results, please keep the following in mind.

 

Both audio and video brands are included in these rankings, and all response data shown herein is from the global sample of from all 2013 BBS participants, regardless of organization type, size, geographic location, or size of budget; and that actual results in the BBS Brand report may be different.

Please note that inclusion of any brand in any cut of the data shown the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in these charts is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand was excluded from these findings based on sample size.

In all cases, these results are shown in alphabetical order, NOT in the order in which they were ranked by respondents to the study.


The 2013 BBS Net Change in Overall Opinion League Table:

2013 BBS -- 2013 BBS Net Change of Overall Opinion

 

 

A total of 53 broadcast technology vendor brands are included in this table (versus 59 in 2012 and 51 in 2011), illustrating the geographic variation of opinion. Analysis of these results shows that are some clear market leaders on a global basis, while others are strong on a regional basis.

It’s useful to understand how often each brand appears in the 2013 BBS Net Change in Overall Opinion League Table.

This is shown below, along with the equivalent data from both 2012 and 2011 for comparison.

 

Frequency of appearance of brands in the 2013 BBS Net Change in Overall Opinion League Table:

  • 10 brands appear four times (compared to 9 brands in 2012 and 13 brands in 2011), meaning they were ranked in the top 30 globally and in each geographic region

 

  • 13 brands appear three times (compared to 13 brands in 2012 and 10 brands in 2011)

 

  • 11 brands appear two times (compared to 11 brands in 2012 and 9 brands in 2011)

 

  • 19 brands appear one time (compared to 26 brands in 2102 and 19 brands in 2011).  This illustrates a fragmentation of opinion  about many brands based on geography

 .

 

Brands appearing four times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adobe, Aja Video, Autodesk, Blackmagic Design, Canon, Evertz, Panasonic, Riedel, Rohde & Schwarz, Sennheiser

 

  • 2012 BBS: Adobe, Avid, Blackmagic Design, Canon, Harmonic, Panasonic, Riedel, Sennheiser, Sony

 

  • 2011 BBS: Adobe, Aja Video, Apple, Blackmagic Design, Canon, Cisco, Genelec, Omneon, Panasonic, Riedel, Sennheiser, Sony, Tektronix

 

 

Brands appearing three times in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: AmberFin, Angenieux, ateme, Cisco, Elemental Technologies, EVS, Harmonic, NewTek, Ross Video, Sony, Telestream, Vizrt, Wide Orbit

 

  • 2012 BBS: Aja Video, Apple, Autodesk, Digital Rapids, EVS, Front Porch Digital, NewTek, Omneon, Phabrix, Rhozet, Ross Video, Vizrt

 

  • 2011 BBS: Ateme,  Evertz, EVS, Harmonic, Net Insight, Rhozet, Rohde & Schwarz, Ross Video, Shure, Vizrt

 

 

Brands appearing two times in the 2013 BBS Net Change of Overall Opinion League Table:

 

  • 2013 BBS: Adam, Ensemble, Front Porch Digital, Lawo, Net Insight, Neumann, Nevion, Phabrix, Screen Service, Snell, Solid State Logic

 

  • 2012 BBS: AmberFin, ateme, brightcove, Cisco, Gigawave, Net Insight, Rohde & Schwarz, Screen Service, Tektronix, Telecast, Wohler

 

  • 2011 BBS: AKG, Digital Rapids, Dolby, Ensemble,  Front Porch Digital, Lawo, Telestream, TVIPS, Wohler

 

 

Brands appearing once in the 2013 BBS Net Change of Overall Opinion League Table:

  • 2013 BBS: arvato / S4M, Avid, Axon, Digital Rapids, Dolby, Fujinon, Linear Acoustic, On-Air (Oasys), Ooyala, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, TVIPS, Wheatstone, Xen Data, Yamaha

 

  • 2012 BBS: Aspera, Axon, Calrec, Clear-Com, Dolby, Elemental Technologies, Ensemble, Envivio, Evertz, Genelec, Harris, Isilon Systems / EMC, Kaltura, Kit Digital, Lawo, Neumann, PubliTronic / Grass Valley, RTW, Schoeps, Shure, Snell, Telestream, Wheatstone, Wide Orbit, Wowza, Yamaha

 

  • 2011 BBS: AmberFin, Audio-Technica, Avid, Fujinon, Grass Valley, Harris, Inlet Technologies, Linear, Linear Acoustic, Miranda, MSA Focus, Nevion, Playbox, PubliTronic, Schoeps, Screen Service, Solid State Logic, Telecast, Yamaha

 

..

Frequency Analysis of the Brands in the in the 2013 BBS Net Change of Overall Opinion League Table:  

In order to provide a better understanding of which brands were most highly ranked in each geographic region, the data has been provided in the table below, which shows the global and regional performance for each brand in the top 30 ranking of overall opinion.

.

2013 BBS -- 2013 BBS Net Change of Overall Opinion -- Frequency Analysis

 

 .

This frequency analysis chart shows that there are some interesting geographic variations in the data. Here’s a closer look at how brands appeared by geography:

 

Appearing only in the global ranking of the 2013 BBS Net Change of Overall Opinion League Table

Four brands achieved a top 30 ranking in the 2013 BBS Net Change of Overall Opinion league table, despite not being listed in the top 30 of any of the three geographic regions.  This may be a function of sample size.  As discussed above, there is a minimum sample size requirement for inclusion in each cut of the data presented in these chart, and the global ranking, by definition, has the largest overall sample.

  • Ensemble, On-Air Systems, Ooyala, Xen Data

 

Appearing only in one region of the 2013 BBS Net Change of Overall Opinion League Table

The following  brands appear in one regional category of the 2013 BBS Net Change of Overall Opinion League Table, but do not appear in the global ranking:

  • Arvato/S4m, Avid, Digital Rapids, Dolby, Fujinon, Linear Acoustic, RTW, Shure, Soundcraft, Studer, Tektronix, Telecast, T-VIPS, Yamaha

 

Appearing only in the EMEA region in the 2013 BBS Net Change of Overall Opinion League Table

  • Arvato/S4m, Axon, RTW

.

Appearing only in the Asia-Pacific region in the 2013 BBS Net Change of Overall Opinion League Table

  • Avid, Digital Rapids, Dolby, Fujinon, Shure, Soundcraft, Studer, Tektronix, Yamaha

 

Appearing only in the Americas region in the 2013 BBS Net Change of Overall Opinion League Table

  • Telecast, T-VIPS, Wheatstone

.

 

How These Results Were Calculated

No company is perfect, and the brands we measured in the 2013 BBS are no different.  All brands in the 2013 BBS had both positive (got better) and negative (got worse) connotations associated with them.  There were also are significant percentage of respondents who said their opinion of a brand had “stayed the same.”

2013 BBS participants were asked to rank their opinion of broadcast technology vendor brands on a scale of 1-10 — with 10 being best in the market, and 1 being worst in the market.

We then asked respondents whether their opinion of these brands has changed over the last few years – specifically whether they feel their opinion of each brand has “improved,” “declined” or “stayed the same.”

The Net Change in Overall Opinion for each brand was then calculated by subtracting the percentage of respondents who said a brand “got worse” from the percentage of respondents who said their opinion of a brand had “got better,” while ignoring the “stayed the same” responses.

This “change of opinion data” provides a more comprehensive view of how each brand is perceived by the market because it takes into account positive and negative perceptions.

 

 

Please note that inclusion of any brand in the tables in this article is dependent on available sample size.  The minimum sample size for inclusion in the tables shown herein is 30 respondents per cut of the data. Therefore it is possible that a highly regarded brand may have been excluded from any or all of the tables in this article due to insufficient sample size.

Also, please keep in mind when reviewing this information that all data these charts are presented in alphabetical order, NOT in the order brands were ranked by respondents to the 2013 BBS.

 

.

The information in this article is based on select findings from the 2013 Big Broadcast Survey (BBS), a global study of broadcast industry trends, technology purchasing plans, and benchmarking of broadcast technology vendor brands. Nearly 10,000 broadcast professionals in 100+ countries took part in the 2013 BBS, making it the largest and most comprehensive market study ever conducted in the broadcast industry. The BBS is published annually by Devoncroft Partners.

Unless otherwise specified, all data in this article measures the responses of all non-vendor participants in the 2013 BBS, regardless of factors such as organization type, organization size, job title, purchasing and geographic location.  Please be aware that responses of individual organization types or geographic locations may be very different. Granular analysis of these results is available as part of various paid-for reports based on the 2013 BBS data set. For more information about this report, please contact Devoncroft Partners.

.

.

Related Content:

The 2013 Big Broadcast Survey (BBS) – overview of available reports, including covered brands and product categories

Largest Ever Study of Broadcast Market Reveals Most Important Industry Trends for 2013

Tracking the Evolution of Broadcast Industry Trends 2012 – 2013

Analyzing Where Money is Being Spent in the Broadcast Industry – The 2013 BBS Broadcast Industry Global Project Index

Broadcast Technology Products Being Evaluated for Purchase in 2013 – 2014

Devoncroft Partners: 2013 Broadcast Industry Market Research Findings

Ranking Broadcast Technology Vendors Part 1 – The 2013 BBS Overall Brand Opinion League Table

Previous Year:  The 2012 BBS Net Change of Overall Brand Opinion League Table

.

© Devoncroft Partners. All Rights Reserved.

.

.

 

Harmonic Moves Transcoding Technology to the Cloud, Launches AWS-Based Service

broadcast industry technology trends | Posted by Joe Zaller
Mar 05 2013

Harmonic announced a cloud-based transcoding service for professional applications that it says will enable “content creators, service providers, and media professionals to quickly and cost-effectively convert broadcast-quality video content to virtually any standard media format.”

Dubbed ProMedia Carbon MP, Harmonic’s transcoding services runs on Amazon Web Services (AWS), and allows users to buy processing in hourly blocks, or via a monthly subscription.  Users can also access it via XML APIs to deploy scalable, cloud-based transcoding workflows.

Features and functionality includes a wide variety of image processing operations including transcoding, SD/HD conversion, PAL/NTSC conversion, logo insertion, color space conversion, color correction, and multi-format closed-captioning.  The company also says ProMedia Carbon MP supports the industry`s broadest array of acquisition, nonlinear editing, broadcast, web, and mobile formats including MXF, XDCAM® HD, QuickTime®, CableLabs®, and MP4.

Harmonic is the latest company to jump into the cloud-based transcoding world.

Earlier this year, Amazon launched the “Amazon Elastic Transcoder,” and last year at IBC Brightcove launched a cloud-based transcoding service using technology acquired in its $30m acquisition of Zencoder.

Transcoding is clearly a hot space, and the cloud-based transcoding services space just got a bit more crowded with Harmonic’s announcement.

As broadcasters and media companies scramble to deploy multi-screen services, transcoding is seen by many as a key technology.  As a result, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals and related-financial news:

 

 

  • In January 2013, Amazon unveiled 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.”

 

  • 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

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

 

 

Related Content:

Press Release: Harmonic Launches Cloud-Based Professional Video Transcoding Service

Harmonic Blog: Cloud Transcoding with Harmonic’s ProMedia Carbon MP – includes additional resources

Harmonic ProMedia Carbon MP Site on AWS Marketplace

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

.

© Devoncroft Partners. All Rights Reserved.

.

Elemental Technologies Says Revenue Doubled in 2012 to $21 Million as Transcoding Technology Continues to Grow

broadcast industry trends, Broadcast technology vendor financials, Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Feb 06 2013

The revenue of video transcoding technology supplier Elemental Technologies more than doubled in 2012 versus 2011, according to information supplied to Forbes magazine by the company.

Elemental was featured in a Forbes list of the “100 Most Promising Privately-Held, High-Growth Companies in the United States,” coming in at #23 on the list. Elemental also appeared on the Forbes list last year, coming in at #54.  The 30-place jump in the Forbes rankings was the largest by any company.

Forbes says that Elemental posted full year 2012 revenue of $21 million, up 106% versus the previous year.  No other financial metrics such as profitability, gross margins, operating margins, etc., were provided.  However, in a May 2012 profile by technology website GigaOm, Elemental’s founder and CEO Sam Blackman, said that company was not yet profitable, and had revenue “in the “eight-digits” [in 2011] after having sales in the seven digits during 2009 and 2010.”

Elemental attributed its year-over-year revenue growth to continuing to satisfy the video processing needs of major media companies, double-digit growth in the OTT video market, and strong consumer adoption of tablets and other mobile video devices.

The company also said it more than doubled its customer base in 2012, and now serves 250 media and entertainment brands across nearly 40 countries.  Elemental is apparently taking on staff to meet increasing customer demand.  According to Forbes, the company currently has 102 employees, up from 70 employees in May 2012.

In May 2012, Elemental closed a $13m fundraising round led by Norwest Venture Partners, which brought the total amount of funding raised by Elemental to just under $30m.  In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures, who also participated in the May 2012 fundraising round.

As broadcasters and media companies scramble to deploy multi-screen services, video transcoding has become a hot space, and Elemental’s impressive year-over-year growth is certainly a testament to this phenomenon.

As a result of the growth in this technology area, transcoding has also attracted its fair share of financing and M&A activity.  Here’s a quick run-down of some of the recent transcoding deals:

 

  • In January 2013, Amazon unveiled 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.”

 

  • 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

 

 

 

 

 

 

 

 

 

  • RGB Networks bought transcoding vendor Ripcode in 2010

 

 

Related Content:

Forbes: Americas Most Promising

Elemental Closes $13 Million Funding Round, Latest in Series of Transcoding Deals

GigaOm Article: Elemental gets $13M to sell arms in the online video fight

Press Release: Elemental Secures $13M to Ignite Business Expansion

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

.

© Devoncroft Partners. All Rights Reserved.

.

Amazon Launches Scalable Cloud-Based “Elastic Transcoder” Service – A Potential Disruptor in a “Hot” Technology Space

broadcast industry technology trends, broadcast industry trends | Posted by Joe Zaller
Jan 30 2013

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

 

 

 

 

 

 

 

 

  • 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.

.

.

Related Content:

Amazon Elastic Transcoder (beta) Homepage

Amazon Elastic Transcoder Webinar

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

More Broadcast vendor M&A: Wohler Buys RadiantGrid, Latest in Series of Transcoding Deals

Envivio Files for $85 Million Goldman Sachs Led IPO

Envivio Closes $16.5 Million Fundraising Round

More Broadcast Vendor M&A: Private Equity Firm Acquires Telestream

More Broadcast Vendor M&A — Telestream Purchase of Anystream Now Official

More Broadcast Vendor M&A: Cisco to Buy Inlet Technologies for $95m

Elemental Technologies: SEC Filing Disclosing 2010 Fundraising Round

.

© Devoncroft Partners. All Rights Reserved.

.

Brightcove Revenue Increases 32 Percent in Q3 2012

Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Nov 01 2012

Online video publishing provider Brightcove announced that its revenue for the third quarter of 2012 was $22.1m, up 32% versus the same period a year ago.

Subscription revenue for the quarter was $21.5m (97% of total revenue), up 35% versus the same period a year ago. Professional services and other revenue was $600,000, down 25% from last year.

The GAAP net loss for the quarter was $600,000, or $0.02 per share, compared to a GAAP net loss of $5.4m, or $1.09 per share last year.  The non-GAAP net loss for the third quarter was $1.5m, or $0.05 per share, compared to a non-GAAP net loss of $2.9m, or $0.59 per share last year.

The GAAP operating loss for the third quarter was $3.7m, compared to an operating loss of $3.3m last year. The non-GAAP operating loss for the third quarter was $1.3m, compared to a non-GAAP operating loss of $2.2m last year.

GAAP gross margins were 68% for the third quarter, flat with last year. Non GAAP gross margins were 69%, up from 52% last year.

The company ended the quarter with cash, cash equivalents and investments of $30.8m, down from $58.6m at the end of the previous quarter. The decrease in cash was driven primarily by the $27.2m acquisition of Zencoder.  Free cash flow for the third quarter was $1.4m compared to negative $5.5m last year.

 

Brightcove chairman & CEO said he was pleased with the Q3 results and issued a bullish statement on the company’s future potential, saying “We believe that we are in the very early stages of a fundamental shift in how digital content is being delivered and consumed. We view this as a significant market opportunity, and Brightcove is focused on leveraging our first mover advantage into continued, long-term market leadership.”

 

Guidance:

Brightcove said it expects to post a Q4 2012 non-GAAP operating loss of $1.9m to $2.2m on revenue of $22.8m to $23.3m. The non-GAAP loss per share for Q4 2012 is expected to be $0.07 to $0.08.

For the full year 2012, the company expects to post a non-GAAP operating loss of $7.5m to $7.8m on revenue of $86.5m to $87m.  The full year non-GAAP  loss per share is expected to be $0.35 to $0.36.

The company cautioned that the finalization of the Zencoder acquisition could impact its non-GAAP results for the fourth quarter and full year 2012.

.

.

 

Related Content:

Press Release: Brightcove Announces Financial Results for Third Quarter 2012 | Business Wire

Brightcove SEC Filing Details Zencoder Financials

Brightcove SEC 8K Filing: Zencoder Financials

Brightcove 8K Filing with SEC: Zencoder Inc Financial Statements Year Ended December 31, 2011 and the Period From January 8, 2010 (Inception) through December 31, 2010

Brightcove 8K Filing with SEC: Zencoder Inc. Unaudited Condensed Financial Statements For the Six Month Periods Ended June 30, 2012 and 2011

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

Press Release: Brightcove Announces New Services to Transform the Video Encoding Workflow | Brightcove

.

© Devoncroft Partners. All Rights Reserved.

.

Brightcove SEC Filing Details Zencoder Financials

Broadcast technology vendor financials, Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Oct 24 2012

Online video publishing provider Brightcove, which recently closed the $30 acquisition of Zencoder, a 2-year old start-up that provides cloud-based encoding, transcoding and an HTML5 video player, disclosed in an SEC filings the financial performance of Zencoder.

For the full year 2011, Zencoder posted a net loss of $1.48m on revenue of $707,868

For the first six months of 2012, Zencoder posted a net loss of $995,157 on revenue $963,707

Brightcove is already putting the Zencoder technology to good use.  At the recent IBC trade show, it cause some excitement when it launched a cloud-based transcoding system based on the Zencoder platform.

.

.

Related Content:

Brightcove SEC 8K Filing: Zencoder Financials

Brightcove 8K Filing with SEC: Zencoder Inc Financial Statements Year Ended December 31, 2011 and the Period From January 8, 2010 (Inception) through December 31, 2010

Brightcove 8K Filing with SEC: Zencoder Inc. Unaudited Condensed Financial Statements For the Six Month Periods Ended June 30, 2012 and 2011

More Broadcast Vendor M&A: Brightcove Buys Zencoder for $30 Million in Latest Video Transcoding Deal

Press Release: Brightcove Announces New Services to Transform the Video Encoding Workflow | Brightcove

.

© Devoncroft Partners. All Rights Reserved.

,

%d bloggers like this: