In the latest M&A news, Google acquired Anvato, a software platform that fully automates the encoding, editing, publishing and secure distribution of video content across multiple platforms. Terms of the sale were not released, reports TechCrunch, but the acquisition itself indicates that Google wants media companies to use its cloud platform for their video needs, and it needs a strong partner to facilitate that goal.

Anvato works with hundreds of customers, helping them to manage video. Their customers include NBCUniversity, FOX Sports, CBS Local Media, Telemundo, Media General and more. The Anvato team will work with Google’s Cloud Platform team, complementing Google’s efforts to enable media processing and workflows in the cloud.

“The cloud is transforming the way video content is created and distributed to an array of connected devices, as well as the way users engage with this content. And in recent years, the adoption of over-the-top (OTT) technologies has emerged as a critical platform for delivering rich audio, video and other media via the internet,” said Belwadi Srikanth, senior product manager of the Google Cloud Platform in the July 7 announcement.

“With OTT adoption rapidly accelerating, the Cloud Platform and Anvato teams will work together to deliver cloud solutions that help businesses in the media and entertainment industry scale their video infrastructure efforts and deliver high-quality, live video and on-demand content to consumers on any device – be it their smartphone, tablet or connected television,” added Srikanth.

In layman’s terms, Anvato’s product provides a turnkey solution for media companies to do a variety of complex tasks without having to invest time and money in a proprietary system. With the Anvato Media Content Platform (MCP), media companies can offer:

–      Live streaming to scale without limits and simplify the streaming infrastructure

–      Video encoding to more efficiently allocate resources

–      Cloud editing for quick editing on the go

–      Syndication to distribute content in real time

–      Ad insertion to dynamically include high-value, interactive, targeted ads

–      Subscriptions/OTT/TV Everywhere with APIs and front-end applications

–      Players for every type of device and screen

–      Reporting for real-time metrics

Anvato CEO Alper Turgut commented on the sale:

“We are thrilled to bring together Anvato with the scale and power of Google Cloud Platform to provide the industry’s best offering for OTT and mobile video. This will allow us to supercharge our capabilities, accelerate the pace of innovation, and deliver tomorrow’s video solutions faster, enabling media companies to better serve their customers,” said Turgut.

Insider Take:

In the last couple of years, mobile video and over-the-top (OTT) television have exploded in popularity. To support that growth, media companies need powerful tools to stay ahead of the competition, and they need ways to monetize their products to pay for those efforts. Anvato provides all of the necessary tools, and Google wants to get in the game. An acquisition was an easy way for Google to accomplish that.

From a subscription perspective, this is a great opportunity for companies to expand and grow their video offerings. Not only can companies offer video and OTT subscriptions, but they can also insert ads, for those who also utilize an ad-supported business model. The marriage between Anvato and Google creates a more powerful offering.