Posts Tagged ‘Acquisitions’

LongTail Video Acquires Bits On The Run – an Interview with LongTail CEO, Dave Otten

May 14th, 2010

I recently had the pleasure of catching up with Dave Otten, CEO of LongTail Video whom recently acquired Bits On The Run, a SaaS-based OVP that was built on the premise of being insanely easy to use and straightforward in it’s approach. Bits On The Run was developed by Jeroen Wijering, creator of the wildly successful JW Player. Dave was kind enough to shed some light on the acquisition, the team dynamics, and their recent release of the JW player for HTML5 in the following online interview. Dave informed me that they plan to further staff the company in engineering and product management in the coming months to help further integrate and expand upon the products.

VidCompare: You’ve been working with the Bits On The Run team for a few years. How do the two businesses compliment each other (what was the reasoning behind the acquisition)?

Dave: We think that Bits on the Run is a great match for a few reasons.  First, both LongTail and Bits have long shared a common approach to the market centered on providing affordable, simple-to-use video tools for web sites that are new to online video.  The fact that we were on the same page from a market strategy perspective was an important factor in our decision to join forces.  Second, the Bits video management platform is a perfect complement to LongTail’s current product offering, which includes the popular JW Player, its AddOns library, and the AdSolution.  Over the past year, we spent a lot of time talking to our million-plus customers about what products they were looking for and what we learned was that the overwhelming majority of people were looking for a video management system that’s both easy-to-use and affordable.  That’s exactly what Bits on the Run is.  Third, Bits has been built by an incredibly talented group of engineers whose skills fit well with what we doing at LongTail. Anytime you can add a great group engineers to the team via an acquisition is a really big deal.

VidCompare: Will you keep the Bits On The Run name or will the businesses meld into Long Tail Video?

Dave: In the short-term, we will keep the Bits on the Run name for our video platform product.  This will change over the next couple of quarters as we merge Bits with LongTail’s existing products to create a fully-integrated offering that gives publishers complete control over how they manage their online video assets.  With our integrated offering, publishers will be able to use LongTail for one, two or all of our products.  It will be completely up to the publisher and what its needs are.

VidCompare: What will Jeroen Wijering (the creator of the JW player) be working on as a new member of the LTV team?

Dave: Actually, Jeroen isn’t all that new to LongTail Video.  We have been working together since the end of 2007 when LongTail Video acquired the JW Player and have formed a great partnership over the years.  As I mentioned a bit earlier, one of the many reasons why we acquired Bits was to have a talented person like Jeroen 100% focused on building LongTail Video.  In terms of his role moving forward, Jeroen will be focused on three areas.  First, he will continue to collaborate with our NY-based player team to drive the vision and direction of the JW Player family of products.  Second, he will lead all product development efforts for Bits.  Third, and most importantly, Jeroen will take a proactive role in leading and interacting with our large developer community.  We think that our community is critical to our success:  they provide us with direct feedback on our product direction and they contribute content and code back to us through our forums or our AddOns library.  I can think of no better person to lead our community development efforts than Jeroen.

VidCompare: I recently completed a questionnaire from Jeroen asking what new features users would like to see. What new features do you have planned for the new combined product and when will you begin rolling out new developments?

Dave: We have a ton of exciting new product features on our roadmap.  I won’t go into all of our plans now, but here are a few things for you to keep your eye on:

  • For the JW Player, you will see our JW Player for HTML5 and a more extensive JavaScript API for the JW Player for Flash that will make it easier for users to add small code enhancements and customizations to the base player
  • For the AdSolution, we will be integrating the key components of the Open Video Ads project, which is now owned by LongTail, into our core ad serving solution.  We will be talking a lot more about our plans here in the coming weeks.
  • For Bits, we are focused on simplifying the UI and adding more robust analytics to help customers understand how users are viewing video.

You can expect to see these new products roll-out over the coming months, beginning w/ the beta version of the JW Player for HTML5 this week.  In terms of product integration, we have already taken the initial steps to combine Bits with LongTail’s products.  Today, publishers can use LongTail’s JW Player and the AdSolution within the Bits video management system. In addition, Bits customers can easily incorporate any of the hundreds of plugins and skins within LongTail’s AddOns library to customize their JW Player’s look and functionality.  I think we are off to a pretty good start.

VidCompare: What plans do you have for HTML5 and when will we see the new player?

Dave: While we believe that HTML5 has a ways to go before it replaces Flash for video playback, we still are very excited about its potential especially among mobile and tablet devices.  Given this, we have been hard at work on JW Player for HTML5 and will be releasing a beta version this week which we think is a big step forward compared to other efforts already in the market.  Here are a few features that will be included in our initial release:

  • Seamless fallback to the JW Player for Flash.  What this means is that the JW Player for HTML5 will revert, or fallback, to the Flash version of the player in cases where an end-user is viewing a video from a non-HTML5 compliant browser.  We think this solves a big obstacle for web sites that are a bit hesitant to use HTML5 for video delivery because a large % of users still use non-HTML5 compliant browsers.
  • Full PNG skinning support.  One of the many things users like about the JW Player is the ability to customize the look of their player by using one of the skins in LongTail’s AddOns library.  The JW Player for HTML5 supports the same PNG skinning capabilities as the Flash player so users will not lose any customization elements.
  • Robust JavaScript API.  With this feature, the JW Player for HTML5 is plugin-extensible so that developers can easily create plugins to enhance the core functionality of the player.  The great thing about the JW Player for HTML5 player is that the door is now open for the hundreds of thousands of developers with JavaScript skills to create plugins for the JW Player.  Before, only developers with ActionScript skills were able to create plugins.  We are pretty excited about opening this up for more developers to contribute back to our efforts with the player.

More Good News for Online Video Platforms, Brightcove Raises $12 Million

April 5th, 2010

Yes, more good news in Online Video on the heels of Google acquiring Episodic just a few days ago. Brightcove, the MA based Online Video Platform has raised a series D round of $12 million bringing them to a whopping $99 million in investment since inception in 2004. We were fairly certain that Brightcove was in talks with Google back in September of 2009 but the price was too high and Jeremy et al were/are convinced that they’d do it on their own with a rumored IPO in their sights for 2011.

The Macromedia borne OVP has been on a tear the past few quarters with the launch of their SMB video hosting offering, Brightcove 4, Express Edition as well as wide-spread expansion Internationally. With the new funds they plan to further their world-wide expansion, accelerate product development, and improve upon their balance sheet.

2010 is certainly shaping up to be an interesting year for the OVP space as we’ve seen several acquisitions, mergers, and fundings in just the first quarter alone. This is clearly a defining year for online video as we rip off our training wheels and hit the vert ramps full steam ahead.

Google Acquires Online Video Platform Episodic, No April Fools Here

April 2nd, 2010

Today’s news from Episodic founder, Noam Lovinsky that they’ve been purchased by Google, is very important to the OVP space. There are not many details about the deal in the form of purchase price, future plans, etc. but Noam offers a bit of info including a small FAQ for customers on their blog (link above).

As we mentioned in our 2010 OVP Predictions last December, this would be the year for M&A activity in Online Video.  We heard from Kit-Digital early on acquiring not one, not two, but three OVPs. Multicast was the latest, announced just last month. We saw SesameVault, a young OVP put itself on eBay, and we witnessed one of the early YouTube competitors, Veoh completely shut its doors after failing to reinvent itself or to garner further funding.

But this acquisition is different, it’s hopeful in my humble opinion. Google, the Internet’s dominant presence, has further validated our space after the purchase of YouTube for an astounding amount of money. We’ve heard from little birds that, while this purchase price is nothing in comparison, it is still a healthy amount of money all things considered. What things you ask? Well, Episodic by comparison is a relative newcomer in the OVP space with fewer customers than most of their competitors. They had just recently publicly launched their business just a few months ago, and had taken $2.5 million in funding. This is not to say that Episodic does not deserve to be bought by Google, they absolutely do.

I have the privilege of knowing Noam and have seen the insides of his product. It was very impressive back when I first saw it and they’ve had a lot of time to further enhance the technology which is clearly the reason for Google’s purchase of them. Google is about technology and talent, two things Episodic has to offer Google with their stellar product line and highly talented team of engineers. Congratulations Noam, Matias (a Senior Web Developer at Google), and team. We look forward to learning more and watching you flourish within the Google walls.

Here’s to a healthy year of further growth and prosperity in Online Video.

Kit-Digital Acquires Multicast Media, Q&A with Lou Schwartz, Multicast CEO

March 29th, 2010

Earlier this month it was announced that Kit-Digital, who’s been on a recent buying spree gobbling up competitive businesses Narrowstep and The Feedroom, had acquired Multicast Media, one of the earliest media companies to establish themselves as an Online Video Platform, for roughly $18 million. Multicast was founded in 2000 and launched their first OVP product in 2007 with VidegoPro which eventually took on the corporate brand, Multicast. By 2010 Multicast was generating $12 million in revenue from platform licensing which is more than probably 80% of the other OVPs, but had been in talks with Kit-Digital for the past 6 months to merge their services.  The deal comprised of $4.9 million in cash, 1.3 million shares, and a debt assumption of $4.6 million.

I asked the Multicast team for a quick Q&A to dig into the acquisition to learn a little more about what the new organization will look like, what will happen with Multicast’s brand, and what will be the layout of the corporate structure.

VidCompare: How long have you been working on this deal with Kit Digital?

Multicast: The deal had been in the works for roughly 6 months.

VidCompare: The release mentions that your team will remain in tact in GA. Do you expect to integrate the services into one business unit eventually?

Multicast: Our Atlanta office will remain in tact and will serve as the headquarters of KIT digital’s technical operations in the Americas region.

VidCompare: If not, will the Multicast name remain in play as a separate offering?

Multicast: For now, the two brands will remain the same – Multicast and KIT digital.  Over the next few months, Multicast will become KIT digital.  However, our Streaming Faith and 316 Networks brands will remain the same. Multicast and KIT’s technology platforms will be fully maintained in the foreseeable future.  Over time, we will integrate the two platforms together to create the “best of breed” platform that brings the most benefit and value to our clients.  There will be no lost functionality.

VidCompare: What will be your new roll within the company?

Multicast: Lou is now the head of the Americas. Multicast is very excited about joining the KIT digital family and the opportunity to bring even more value and exceptional customer service to our clients.

The Kit-Multicast merger is a sign of the times in my humble opinion. As I’ve mentioned in the past, I think 2010 is the year of streamlined OVP business models and the beginning of the shakeout in the space.