European entertainment giant RTL has bought a majority share in programmatic video advertising company SpotXchange.

The $8 billion group with more than 10,000 employees has interests in 54 TV channels and owns production company FremantleMedia.

SpotXchange chief executive Mike Shehan points out that it is the first time a major broadcaster has invested in programmatic video advertising: “SpotXchange has never been afraid to take the road less travelled, and challenge the norms in the ad tech industry.

“Instead of selling to a major US technology company, we’ve taken a route that will allow us to operate independently while becoming a core part of RTL’s global business and strategy,” he says.

RTL Group will acquire 65 per cent of the the Denver-based video advertising monetisation company for an initial US$144 million plus an ‘earn-out component’ based on future performance. RTL also an option to acquire the remaining shares.

Founded in 2007, SpotXchange was the first online advertising marketplace with an exclusive focus on video, and now provides its platform to hundreds of publishers around the globe including The Atlantic, Hearst Corporation and Mail Online.

It claims more than a billion auctions for video advertising impressions are transacted through its platform daily, with ads delivered to 335 million people.

Growth in programmatic video advertising is estimated to increase from US$2.7 billion in 2013 to US$15.4 billion in 2018 worldwide.