Yesterday, Accenture announced that it will acquire NJ based and privately held Origin Digital in a deal that is expected to close within the next 30 days. While terms of buyout were not disclosed, I’m sure we’ll read about the price at some point in one of Accenture’s future public filings.
For the past few years, Origin Digital has been working primarily with broadcast clients to streamline the content workflow problem of signal acquisition, ingestion, transcoding, management, syndication and delivery of live and on-demand video assets through their web-based management tools. Their system is pretty robust and many of the major CDNs work with or use them for some of these services that the CDNs don’t do themselves. With Accenture taking Origin Digital’s products in-house it will be interesting to see if these services are still going to be available to the CDNs and whether or not they will continue to be able to re-sell them.
While I never thought of Accenture as one who would be in the digital media services business, acquiring Origin Digital gives them a real offering in the market with the types of customers Accenture does business with. Origin Digital’s products work as advertised, they are a small nimble company with some smart technology folks and more importantly, Accenture looks like they plan to focus on the bigger pain point with video owners, that being the workflow. We should know more about Accenture’s offering in the market when they officially launch the digital media portion of their website this summer.
We keep hearing and reading a lot about the content delivery market, but it’s all the other pieces around delivering video that’s the real complex part. Since no standards exist when it comes to video over IP, content owners need to figure out how to get their content in the right format for all the syndication services and devices, while at the same time figuring out how to scale their business and keep costs down with that growth. The workflow for Internet based video is going to be the biggest problem the industry as a whole is going to face 24 months from now. Sure, we’ll always need delivery, but as the business for online video content on the web really begins to take off, and there is money to be made, content owners are going to be struggling to figure out how to put their content in all of the necessary formats, for all the different devices, for all the different players and with different levels of protection. Not to mention if you need to do this around the clock for live content as well. Many are already struggling with this today and it’s only going to get more complex as we move forward.
