DivX Buys AnySource for $15M to Get Closer to the TV

anysourceVideo codec company DivX announced today that it has acquired web-video-to-the-TV platform company AnySource Media. DivX will pay $7.5 million in cash at closing and up to another $7.5 million over the next three years if certain technical, revenue and distribution milestones are met.

AnySource developed the Internet Video Navigator, which is software embedded directly inside net-connected HDTVs, Blu-ray players and other CE devices that can access web video from content partners including: The Associated Press, TheStreet.com, Break.com, Revision3, Everwell, ON Networks, and Next New Networks. The company has not announced its TV hardware partners.

DivX has relationships with both hardware companies and Hollywood studios, but currently requires some kind of PC-mediated experience to watch DivX content on TVs. For example, last week DivX announced that major Hollywood movies would be available for download via Film Fresh, however those PC downloads still required a DVD to be burned or transfer via USB drive to watch the content on a TV set. The AnySource acquisition gives DivX a direct path to the television, “Consumers want to be able to access content directly with the remote control,” DivX CEO Kevin Hell told us by phone.

Content partners of the new entity will not be required to offer video in the DivX format, and the platform will support a wide variety of codecs.

There are no layoffs planned at this time and AnySource will remain in Malvern, Penn. AnySource CEO Mike Harris will report to Hell and head up a yet-to-be named “next evolution of the product line,” according to Hell.

From what Hell said, it looks as though AnySource’s initial revenue models will be revisited. Whereas AnySource told us in March that it planned on making money through ads on its menus and affiliate fees, Hell told us they are looking at new models including licensing fees and rev-share agreements.

AnySource has raised more a little more than $4 million to date, with a $3.2 million Series A round from NextStage Capital, Murex Investments and individual investors from the cable TV and VOD industry in March.

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