The Israeli startup Tvinci, which has innovated paid on-demand TV service, has been bought by the open-source video platform company Kaltura, according to an announcement by the companies on Thursday.
Tvinci's software platform delivers over-the-top (OTT) TV services through the internet, allowing linear and on-demand TV content to be accessed via smartphones, computers, smart TVs and other devices.
New York-based Kaltura intends to integrate Tvinci's technology with its own video platform, which enables video content to be hosted and profited off of by clients.
Tvinci's 60 employees will join Kaltura's team in Israel through the sale, and Tvinci founders Ofer Shayo and Ido Wiesenberg will be appointed to Kaltura's top management team, reports Venture Beat.
While the financial aspects of the sale have not been announced, Kaltura has raised $116 million in funds since being founded in 2006, and features over 100,000 clients including media companies, educational institutions and others.
The Israeli startup's pay OTT TV platform is potentially a large profit opportunity, as clients will spend over $17 billion for the services by 2017, according to estimates.