Yesterday Amazon announced it acquired the video streaming start-up company Elemental. According to the release, Elemental has pioneered a number of software-based solutions for multiscreen content delivery and powers many of the world’s most innovative app-delivered video offerings and new services like 4K TV.
In other words, it tailors traditional television broadcast for the vast array of Internet-linked devices used for streaming video. There was no word on the pricing, but The Information is saying Amazon’s bank account is $500 million (£327m) shorter after the deal.
With the purchase of Elemental Technologies, which helps process digital video for partners like ESPN, Amazon Web Services is hoping to defend the lead it has built with existing digital video customers like Netflix, The Information says.
Elemental boasts more than 700 media customers including CNN, BBC and HBO. The start-up also supports 4K ultra high-definition services, including some delivered by the BBC during last year's World Cup coverage, according to Amazon.
“We have been working with Elemental to address shared customers in the Media & Entertainment business for the past four years,” Jeff Barr, chief evangelist for AWS, wrote in a blog post.
"Together, we'll collaborate on deeper technology integrations and new infrastructure offerings so that media and entertainment companies can evolve their hybrid and cloud models," Amazon Web Services senior vice president Andy Jassy said. The start-up will continue to operate as an independent brand, Amazon has confirmed.
“Today’s announcement will allow us to work even more closely together to provide media companies with a family of on-premises, hybrid, and cloud-based solutions for Internet-based video delivery,” Barr added.