Microsoft Acquires Clipchamp - Video Editing Software

Microsoft Acquires Clipchamp: Expanding Video Editing Capabilities

Microsoft announced the acquisition of Clipchamp on Tuesday, a company specializing in web-based video creation and editing software. This move signals a potential expansion of Microsoft’s productivity tool offerings.

Clipchamp empowers users to easily assemble video presentations, promotional content, and videos tailored for social media platforms such as Facebook, Instagram, and YouTube.

Strategic Rationale Behind the Acquisition

Microsoft views Clipchamp as a complementary addition to its existing Microsoft 365 suite, serving families, educational institutions, and businesses alike.

The increasing prevalence of video content creation, driven by accessible tools, has established video as a new form of “document” for professional communication. Businesses now utilize video for pitching ideas, explaining procedures, and facilitating team collaboration.

Clipchamp’s unique combination of web app simplicity and the processing power of a PC, leveraging GPU acceleration, made it an attractive acquisition target for Microsoft.

Clipchamp’s Feature Set

Clipchamp offers a comprehensive suite of online video tools, including:

• Trimming, cutting, cropping, rotating, and speed control functionalities.
• Tools for adding text, audio, images, colors, and filters.
• Templates to streamline the creation process.
• Access to free stock video and audio libraries.
• Screen recording capabilities.
• Text-to-speech tools.
• Branding customization options for fonts, colors, and logos.

Previously, Clipchamp offered utilities like video compressors and converters, alongside an in-browser webcam recorder, some of which have been integrated into the current application.

Creators can select from various output styles and aspect ratios optimized for popular social networks, making Clipchamp a valuable asset for digital marketers.

Growth and User Base

Since its inception in 2013, Clipchamp has amassed over 17 million registered users and served more than 390,000 companies.

The company experienced a substantial 54% year-over-year growth rate, accelerated by the shift towards remote work during the pandemic.

During the first half of 2021, Clipchamp witnessed a 186% surge in video exports, with notable increases in specific aspect ratios:

• 16:9 aspect ratio grew by 189%.
• 9:16 aspect ratio (Instagram Stories, TikTok) grew by 140%.
• 1:1 aspect ratio (Instagram) grew by 72%.

Screen and webcam recording also saw significant growth, increasing by 57% and 65% respectively.

Team Expansion and Future Outlook

Clipchamp CEO Alexander Dreiling noted in July that the company had nearly tripled its team size in the past year.

He highlighted a doubling in usage rates, indicating more users are actively creating video content than ever before, with increased adoption for internal communication purposes.

While the acquisition price remains undisclosed, Clipchamp had previously secured over $15 million in funding.

Microsoft’s Prior Video Initiatives

This acquisition isn’t Microsoft’s initial foray into the video market.

The company previously explored acquiring TikTok during a proposed sale mandated by the Trump administration, a deal that ultimately did not materialize.

Microsoft also launched Stream, a business video service, and acquired Flipgrid, a social learning platform utilizing short video clips.

Furthermore, Microsoft has integrated enhanced video capabilities into its team collaboration software, Microsoft Teams.

Industry Context: Adobe’s Acquisition of Frame.io

Microsoft’s move mirrors Adobe’s recent $1.28 billion acquisition of Frame.io, a video review and collaboration platform.

However, Clipchamp caters to a broader audience, while Frame.io is primarily geared towards creative professionals.

Looking Ahead: Integration and Accessibility

Dreiling expressed optimism about Clipchamp’s future within Microsoft, emphasizing a continued focus on making video editing accessible to a wider range of users.

He believes that joining Microsoft will unlock new opportunities and allow Clipchamp to seize the abundant potential within the video creation landscape.

Microsoft has not yet announced a timeline for integrating Clipchamp into its existing software suite, promising further details at a later date.