Amazon announced that it has agreed to purchase Elemental Technologies in an all-cash deal valued at about $500 million, marking Amazon’s biggest deal since last year’s $1 billion acquisition of videogame streaming site Twitch. Elemental helps media companies encode and transcode video content for viewing on the Web and via mobile devices. Amazon plans to add Elemental to its Amazon Web Services cloud computing division, one of the company’s faster-growing units. Amazon reportedly beat out both Ericsson AB and Cisco Systems to acquire Elemental.

“Streaming and Web-based video are becoming key battlegrounds for technology companies as more consumers are seeking to cut their cable bills in favor of a la carte offerings,” notes The Wall Street Journal.

“Elemental counts HBO, Disney’s ESPN and the British Broadcasting Corp. among its hundreds of customers using its video conversion technology. That means Amazon could become a central player in the rush to feed consumers video on any device and at any time.”

As consumers continue looking to their smartphones and tablets for video content beyond traditional TV offerings, the Elemental takeover could streamline Amazon’s efforts with Amazon Instant Video, which streams TV shows and movies as part of its Prime membership.