Adobe Bolsters Flash Video with Acquisition

Adobe on Thursday acquired video software maker Serious Magic, intended to continue its momentum in the streaming video industry. The company produces several applications, including direct-to-disk recording software DVRack as well as video tools Visual Communicator and Vlog It.

After having practically no market share in the streaming video market, Flash has quickly -- and silently -- become the de facto standard for Web video. Sites like YouTube and MySpace have put Adobe at the forefront, and the format continues to gain momentum.

The problem for Adobe now, is figuring out how to monetize the industry migration to Flash video. Serious Magic's tools will help Adobe gain a foothold in the consumer market for the technology.

"The purchase of Serious Magic accelerates our vision to make, not just video but all dynamic media, an even more ubiquitous communications vehicle, whether you're delivering content for the broadcast market, over the web or on mobile devices," Adobe creative solutions vice president John Loiacono said.

While the company intends to still sell Serious Magic's products separately, future versions of Adobe software would incorporate some of the technologies developed by Serious Magic.

Serious Magic CEO Mark Randall will join Adobe as its chief strategist of dynamic media, the company said. Financial terms of the deal were not disclosed.