As part of taking a stronger foothold in the online video services, Google Inc has agreed to buy Widevine, a Seattle vendor of Digital-Rights Management (DRM) software. Widevine provides digital media solutions for the delivery of digital entertainment to any device. Hundreds of service providers use Widevine’s multiplatform DRM and video optimization solutions for securing high quality video and audio.

Though Google is already the largest distributor of online video so far, it currently doesn’t have its own streaming-video DRM technology other than a “content ID” fingerprinting system developed for YouTube. So, by acquiring Widevine, Google will instantly become a dominant player in the market for protecting video content broadcast over the Web.

“We’re excited to welcome the Widevine team to Google, and together we’ll work to improve access to great video content across the web,” said Mario Queiroz, Google vice president on the company’s official blog.

Though price and other terms and conditions wasn’t disclosed, Widevine has raised more than $65 million from investors, including Cisco Systems, Samsung, Charter Ventures, Dai Nippon Printing, Constellation Ventures, Liberty Global, PaceSetter Capital, Phoenix Partners and VantagePoint Venture Partners.

This acquisition will allow Google have its hands on Widevine’s video delivery optimization software and DRM, which is used by more than 250 million web connected devices including TVs and Blu-ray players made by Samsung, LG and Panasonic. But what effect it will make on Hollywood is a matter to ponder. Any way it is sure that it will help Google to increase its credibility among the networks.

via googleblog