AOL Spends $36.5 Mln on Video Platform StudioNow

AOL logo (scrunchy? fabric softener? who knows)

Fresh from being cut loose from Time Warner, AOL has just announced a $36.5 million deal to buy online video platform StudioNow. AOL says the deal is all about integrating a “fully functional” video creation platform into its Seed.com content management system. Seed.com is AOL’s just-launched content management platform; AOL uses it for interacting with freelancers and anyone who wants to get their content into AOL’s properties, including assigning, purchasing, and acquiring content. After the acquisition, Studio now will continue to worl on its existing businesses providing online video management, syndication, and creation tools to businesses. AOL will be paying out the $36.5 million over “multiple years.”

“The successful combination of a talented team, innovative technology, seasoned/professional video creators and strong client service has rapidly established StudioNow as a leader in online video creation and syndication,” said AOL chairman and CEO Tim Armstrong, in a statement. “Premium original video creation is a fundamental part of AOL’s strategy to offer consumers world-class, stimulating content at scale and the integration of StudioNow into Seed.com will enable us to increase our video content/offerings significantly.”

AOL expects to use StudioNow’s technology both for its in-house production studios (which produce things like AOL Sessions, Moviefone Minute, and more) as well as for branded advertising and content partners. And AOL’s move may be a smart one: market analysts are forecasting that spending for online video advertising will grow faster than any other online advertising format in the next few years.

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