Consumers are driving the need to migrate video from TVs and desktops to smart phones and tablets. Amazon Web Services’ purchase of Elemental Technologies Inc. is just one of many deals fueled by the trends. There were also some mega deals. Most notably, AT&T Inc. (NYSE: T) paid $48.5 billion to buy DirecTV, creating the largest pay-TV provider in the world.
“We’ll now be able to meet consumers’ future entertainment preferences, whether they want traditional TV service with premier programming, their favorite content on a mobile device, or video streamed over the Internet to any screen,” said AT&T CEO Randall Stephenson.
And 15 years after the original “convergence” hookup between Time Warner and AOL, Verizon Communications Inc. (NYSE: VZ) bought AOL Inc. in a transaction that closed in July. The deal, valued at $4.4 billion gives Verizon access to AOL’s automated advertising technology and digital media clips and aims to help Verizon make more money from mobile video.
In October, Accenture (NYSE: ACN) completed its acquisition, for undisclosed terms, of S3 TV Technology, a business unit of Dublin-headquartered S3 Group that delivers consulting, automated testing, service monitoring and diagnostic capabilities to video service providers all over the world.
With convergence finally paying off, more video-driven deals are on the way.