Posts Tagged ‘Transcoding’

ATEME Posts 24 Percent Revenue Gain in 2014, Provides Upbeat Outlook for 2015

Annual Results, Broadcast technology vendor financials, Quarterly Results | Posted by Joe Zaller
Feb 16 2015

Video compression specialist ATEME announced that its revenue for 2014 was €25.4m, an increase of 24% versus the same period a year ago.

The company, which raised €13.3m through Initial Public Offering last year, said 2014 was its third consecutive year of revenue growth.

The company’s full performance appears to indicate that its growth accelerated during the second half of 2014, following on from revenue of €12m during the first six months of the year.

ATEME attributed its continued growth to both new business from existing customers such as the European Broadcasting Union (EBU), the acquisition of new customers including the BBC, leading Hollywood studios, tier-1 service providers and post-production studios; and the use of its technology at major events including the FIFA World Cup.

“We have a well-established, worldwide footprint and 2014 allowed us to solidify our base for growth,” said ATEME CEO Michel Artieres. “We are now the trusted technology partner in video compression for 200 customers from around the world. We will continue with investment strategies to provide full, flexible software solutions and to become a more agile solutions provider.”

The company said it believes it is “positioned to profit from soaring worldwide video consumption,” pointing to “the launch of new ultra high-definition/4K channels in Japan, Russia and the United Kingdom in 2015” as evidence of its future potential growth prospects.

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Related Content:

Press Release: ATEME Posts Significant Growth in 2014

Ateme raises €13.3 Million through Initial Public Offering

HD World Cup Drives 22 Percent Growth for ATEME During First Six Months of 2014

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Broadcast Vendor M&A: Telestream Acquired by Genstar Capital

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Jan 07 2015

Telestream_Logo (new in 2014)

Transcoding and workflow vendor Telestream announced that it has entered into a definitive agreement to be acquired by Genstar Capital, a San Francisco-based private equity firm that manages funds with total capital commitments of over $3 billion and targets investments focused on selected sectors within the financial services, software, industrial technology, and healthcare industries.

The seller was Thoma Bravo, the private equity firm that purchased Telestream in 2011 for an undisclosed amount.

Terms were not disclosed, but Telestream said that “the transaction recognizes the company’s significant growth and positions it well for the next phase of expansion.”

The deal comes just four months after Telestream issued a statement saying that its transcoding and workflow revenue increased by 40 percent in 2013 versus 2012, and had achieved profitable growth for the last 14 years. At that time, company CEO Dan Castles attributed the company’s impressive track-record of growth to both innovation and management stability.

Telestream will continue to operate as an independent entity, and its existing management team will continue with the company in their current roles.

Thoma Bravo said in a statement that since it bought the company, Telestream saw “incredible growth on several fronts,” thanks to new product launches, strategic M&A, and expanding its executive and sales team to drive further growth. “Thoma Bravo worked in partnership with management over our three year ownership period to invest in the business, make acquisitions and accelerate the company’s growth,” said Holden Spaht, a managing partner at Thoma Bravo. “The company today is a clear leader in the digital video space with the deepest set of products and services in the market.”

Castles issued an upbeat statement about the deal, and telegraphed he believes that under Genstar, Telestream might continue to use strategic M&A and become an industry consolidator.

“Genstar’s mid-market focus and deep expertise in the software industry will enable Telestream to further accelerate our growth,” said Castles. “Over the past several years, Telestream has experienced its most significant growth. We look forward to our new partnership with Genstar as we increase our investment in existing products, accelerate our reach into new customer verticals and fuel our next phase of development through additional M&A activity. Our product portfolio and business models are well suited for the Genstar environment.”

“Genstar has been following Telestream closely and this acquisition is consistent with our strategy of investing in vertical market software companies,” said Eli Weiss, a Managing Director of Genstar. Telestream is a leader in its market and has posted profitable growth since its founding. As even more content is generated and viewed on more devices, we believe the company will continue its demonstrated growth trajectory, and we will support Telestream’s experienced and successful management team to expand organic growth via new product releases and pursue add-on acquisitions.”

The deal is expected to close in mid-January 2015.

 

Genstar’s acquisition of Telestream is the latest in a series of deals related to online video and transcoding.

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 April 2014, Imagine Communications acquired Digital Rapids for an undisclosed amount

 

  • In April 2014, Dalet acquired Amberfin for an undisclosed amount

 

  • 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

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Related Content:

Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Broadcast Vendor M&A: Telestream Buys Captioning Provider CPC

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

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

Elemental Technologies Says Revenue Increased by 50 Percent in 2013

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

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

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

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: Cisco to Buy Inlet Technologies for $95m

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© Devoncroft Partners 2009 – 2015. All Rights Reserved.

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Telestream Says Transcoding and Workflow Revenue Increased by 40 Percent Last Year

Broadcast technology vendor financials, Broadcast Vendor M&A | Posted by Joe Zaller
Sep 08 2014

Telestream said in a statement that revenue from its “flagship Vantage transcoding and workflow automation systems increased by more than 40 percent last year.”

The company also said that it has posted “profitable growth for the last 14 years.”

Company CEO Dan Castles attributed the company’s impressive track-record of growth to both innovation and management stability.

Privately held Telestream, which was acquired in 2011 by private equity firm Thoma Bravo, did not provide any other financial metrics such as overall revenue, gross margins, or profitability. Neither did it give an indication on the performance of its transcoding and workflow products in the current year.

However, the company did make some provocative statements about the market, competitive vendors, and broadcast industry M&A.

According to Telestream “market forces have driven recent corporate acquisitions, and some of these companies were struggling to survive. As a result, there are new combined companies, new management, and typically, new strategies. One of the likely victims during these transitions are customers who may have purchased products from one of these companies only to learn that a change of direction has resulted in product decisions that impact the original cost of ownership that was part of the initial purchase decision.”

“Based on our own experience of acquiring companies, we know that they have to be implemented carefully and strategically,” said Castles. “Owning a new piece of intellectual property does not mean that you understand the market it serves nor that it will integrate harmoniously within your existing product portfolio. We believe we are the right size as a company – not large and unwieldy, but not so small that we have to chase deals to remain in business. Our customers know we listen to their input as they see new products consistently coming to market that reflect their requirements. Implied in that equation is a level of trust that we will be around for years to come and that investing in products from Telestream is a smart decision long term.”

“Telestream offers its customers a very clear proposition,” said Castles. “We were one of the first companies to develop file-based workflow solutions as long ago as 1998 and today, our products reflect many hundreds of man years of development in this area. We are financially very solid and this has allowed us to stick to our strategies and not be tempted to chase opportunities that may bring in short term results, but distract us in the long term from executing on what we have committed to customers. We are very relevant to our customer base, and we take that role extremely seriously.”

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Related Content:

Press Release: Telestream Announces Strong Growth in File-based Workflow Enterprise Operations

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

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Strong MAM Sales Drive 23 Percent Revenue Increase for Dalet in Q2 2014

Broadcast technology vendor financials, Broadcast Vendor M&A, Quarterly Results | Posted by Joe Zaller
Jul 30 2014

MAM and newsroom specialist Dalet reported that its consolidated revenue for the second quarter of 2014 was €10.7m, up 23% versus the same period a year ago, and up 42% versus the previous quarter.

Excluding a contribution of €1m from AmberFin, which Dalet acquired in April 2014, the company’s revenue in the second quarter of 2014 was €9.7m, up 23% versus the same period a year ago, and up 27.6% versus the previous quarter.

Dalet published the table below to show the difference impact of the AmberFin acquisition.

Dalet Q2 2014 Results with and without AmberFin

 

Gross margins for the second quarter of 2014 were 82%, down from 89% last year, and up from 79% last quarter.   This is the second consecutive drop in gross margins comparted to the previous year.  The company attributed the lower y/y margin performance to due to a less favorable sales mix in the quarter.

 

On a product basis:

  • Asset management revenue was €5.35m, or 50% of total revenue in the quarter

 

  • TV Newsroom systems revenue was €2.89m, or 27% of total revenue in the quarter

 

  • Sport solutions revenue was €535,000, or 5% of total revenue in the quarter

 

  • Radio solutions revenue was €1.6m, or 15% of total revenue in the quarter

 

  • Integration revenue was €321,000, or 3% of total revenue in the quarter

 

In terms of sales mix, license revenues decreased from 33% of sales in H1-2013 to 28% in H1-2014, associated professional services evolved from 30% to 23%, resale of hardware increased from 16% to 23%, recurring support revenues increased from 22% to 26% of revenues.

 

The company said that sales in the Americas increased by 21%, and the region now accounts for 40% of consolidated revenue. The increase in Americas revenue may be due in its win at Fox Sports 1, which is using Dalet’s “Sports Factory” as the end-to-end production and MAM system.  Fox Sports 1 launches on August 17, 2013.

Europe accounted for 48% of revenue, while MEA and Asia-Pacific accounted for 8% and 4% respectively.

The company did not disclose any other financial metrics, including profitability.

 

Results for the First Half of 2014:

For the first six months of 2014, the company’s consolidated revenue was €18.4m, up 20% versus the first half of 2013.  Excluding AmberFin, the company’s revenue for the first six months of 2014 is up 13% versus the same period in 2013.

Gross margins for the first half of 2014 were €14.9m, or 81%, down on a percentage basis from 87% for the first six months of 2013.

Dalet ended the second quarter of 2014 with €6.5 in cash, down from€7.7m on December 31, 2013.

Debt on June 30, 2014 stood at €5.6m, up from €2m on December 31, 2013, following the €3.4 million loan taken to finance AmberFin`s acquisition.

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Related Content:

Press Release: Dalet Revenues for First Six Months of 2014: €18.4 million

Broadcast Vendor M&A: Dalet Acquires AmberFin

Previous Quarter: Dalet Revenue Grows 3 Percent in Q1 2014

Previous Year: Dalet Up 7 Percent in Q2 2013 Thanks to Big Jump in Americas Revenue

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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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

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Elemental Technologies Says Revenue Increased by 50 Percent in 2013

Broadcast technology vendor financials | Posted by Joe Zaller
Jan 15 2014

Video transcoding and compression specialist Elemental Technologies had another year of significant growth in 2013 after more than doubling in 2012.

In previously published reports, privately held Elemental disclosed that its revenue in 2012 was $21m, up 100 percent versus 2011.   Now a newspaper in the company’s home town, is reporting that Elemental grew its revenue by more than 50% in 2013 versus 2012. This implies that the company’s 2013 revenue is somewhere in the region of $31.5m, or about three times what it was just two years ago.

Much of the company’s growth likely comes from international markets given that the company now has five offices in Asia alone.

Interestingly, much that has been written about Elemental recently focuses on compression rather than transcoding – particularly in regard to HEVC compression of 4K images.  According to the article, Elemental did a joint demo with Qualcomm at the recent CES exhibition where they demonstrated streaming 4K video to a tablet at 10Mbit/s using HEVC compression, although it’s not clear whether this was done in real-time (although I attended CES, I did not see the demo).

It’s interesting to see that Elemental is pushing both encoding and transcoding these days, because expands their market into new areas.

It also potentially puts them into competition with large number of companies from Ateme to Zencoder, and everyone in between including industry giants such as Cisco, Ericsson, and Harmonic. But when the market shifts to a new technology standard, as it will eventually do with HEVC compression (and maybe 4K delivery), there are opportunities for new players to break into the market and gain market share.

The fact that the company is working with Qualcomm indicates that Elemental’s HEVC technology is partially targeted, at least initially, at mobile devices rather than broadcast transmission.  This makes sense as our previous research has shown that HEVC will likely be adopted first in streaming and mobile applications where downloadable codecs are more readily available than in markets such as cable and satellite.

Elemental is privately held. In May 2012, the company 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.

In addition to generating a lot of interest in the company, Elemental’s aggressive push  into 4K and HEVC has also likely created an opportunity for the company to enter new areas of the market during this time of technology transition.

For Elemental’s core business of transcoding, the fact that broadcasters and media companies are working 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-related news and 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

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.Related Content:

The Oregonian – Elemental Technologies sees a vivid future in ultra high definition TV

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

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

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

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Broadcast Vendor M&A: Telestream Buys Captioning Provider CPC

broadcast industry technology trends, Broadcast Vendor M&A | Posted by Joe Zaller
Aug 20 2013

Transcoding and workflow vendor Telestream announced that it has acquired Computer Prompting and Captioning (CPC).

Terms of the deal were not disclosed.

CPC, which has about 10 employees according to an article in the Sacramento Business Journal, provides captioning technologies for a variety of professional applications. The company was founded in 1986 by Dilip. Som and Sid Hoffman and has a long history of innovation.

Telestream says the CPC deal will bring it “deep expertise in captioning, which will benefit the company’s current and long term product strategies.”  Telestream also says that its transcoding, workflow automation, live streaming and web publishing products will all benefit from the addition of CPC’s technology.

“CPC is a recognized leader in captioning for television and the Web, whose customers include media and entertainment companies, educational institutions, and houses of worship,” said Telestream founder and CEO Dan Castles. “Our customers at all levels need tools to author and distribute captioning in a more integrated way. This is a natural extension of what we do, and we look forward to integrating CPC’s world-class technology into all of our products.”

 

Second Subtitling M&A Deal in 2013

This is the second acquisition this year of a captioning/subtitling technology provider.  In January 2013, Miranda announced that it had acquired UK-based Softel for an undisclosed amount.

So why the sudden interest in captioning and subtitling by established industry players?

Captions and subtitles have long been required by law, and the “Twenty-First Century Communications & Video Accessibility Act” in the United States took this requirement further by mandating that certain internet video content must also be subtitles.

According to the FCC’s Implementation Schedule for Captioning Internet Video Programming:

  • Live and near-live video programming must be captioned on the Internet if it is shown on TV with captions (as of March 31, 2013)

 

  • Pre-recorded video programming that is substantially edited for the Internet must be captioned if it is shown on TV with captions on or after September 30, 2013.

 

These regulations puts tremendous pressure on broadcasters, media companies, and content owners – and therefore provides opportunities for technology vendors like Telestream and Miranda who have snapped up providers of these solutions.

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Related Content:

Press Release: Telestream Acquires Captioning Leader CPC

Sacramento Business Journal: Telestream acquires Computer Prompting and Captioning Co.

CPC History: The Interesting Story of How CPC Got Started

CPC Milestones

Broadcast Vendor M&A: Miranda Buys Softel

Federal Communications Commission — Twenty-First Century Communications and Video Accessibility Act

Federal Communications Commission — Captioning of Internet Video Programming

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

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© Devoncroft Partners 2009 – 2013. All Rights Reserved.

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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

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© Devoncroft Partners. All Rights Reserved.

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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

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© Devoncroft Partners. All Rights Reserved.

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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.

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Related Content:

Amazon Elastic Transcoder (beta) Homepage

Amazon Elastic Transcoder Webinar

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