Big news yesterday in the online video transcoding market in which we play -- 10 person cloud transcoding start-up Zencoder is being acquired by recently-public online video platform grand-daddy Brightcove for $30 million. Not sure whether this is an all cash, all stock, or combination of both deal.
First, congratulations to both Zencoder and Brightcove. I know both companies well -- and respect them. Jon Dahl, co-Founder and CEO of Zencoder is a good/smart guy -- and, he is a fellow Minnesotan, so that only adds to the equation. President David Mendels of Brightcove also is a stand-up guy and is a seasoned savvy executive.
What does this deal demonstrate? Here are three things:
(1) video encoding/transcoding is increasingly critical in this increasingly multi-screen world; optimized video transformation is essential by a broad swath of companies;
(2) video workflows are increasingly moving to the Cloud, including video encoding/transcoding, for all the reasons about which I have previously written;
(3) video encoding/transcoding is hard, very hard; even online video experts Brightcove felt it important to look outside of themselves for increased horse-power and expertise.
Amen to all three. These are three themes with which we violently agree here at Sorenson Media. That's why we have expanded our desktop video encoding dominance ("Sorenson Squeeze") into the enterprise with Cloud and hybrid Cloud solutions.
Good work gentlemen!