Online video streaming company NeuLion, which provides streaming services to the NFL, NHL, NBA, UFC and Microsoft, among others, has announced it’s purchasing DivX , a company specializing in video codec development and online content delivery, in a deal worth $62.5 million. The deal is expected to finalize in Q1 of 2015, and puts NeuLion in a powerful position for 4K Ultra HD TV streaming technology.
Cheaper and more widely available 4K TVs, computers and smartphones mean barriers surrounding 4K devices are quickly falling, and consequently consumers are expected to snatch up the technology this year. The growth rate is estimated to be roughly 100 million 4K TV shipments by 2018, which is 38 percent of the TV market, according to a report by Futuresource Consulting,a technology trend research company.
This is where DivX’s expertise in the ultra HD market will come in handy for NeuLion. DivX is one of the leading developers of HEVC, a codec which allows 4K content to stream without hogging up the bandwidth that such high-quality video typically demands. The company has paired with various manufacturers, such as LG, Samsung and Toshiba, to develop products with HEVC technology built in.
Thanks to NeuLion’s purchase, the company said in a press release that it’ll soon be offering its clients the option of giving their customers low-cost 4K streaming.
This announcement comes on the heels of another big partnership, where last year Microsoft declared it’s planning a multi-year deal with NeuLion to deliver better-quality video for Xbox One users. Using the official NFL Xbox Live app, Microsoft will broadcast live NFL games at 60 frames per second, roughly double that of traditional TV conduits, according to Venture Beat.
DivX has been bouncing around between owners lately, but NueLion says it’s pleased with the opportunities the company provides.
“NeuLion’s deal to buy DivX comes less than a year after Rovi sold San Diego-based DivX for $75 million in March 2014 to private-equity firms Parallax Capital Partners and StepStone Group,” according to Variety. “DivX claims its video-playback software is used by more than 200 million users on board more than 1 billion devices.”
