-
Here's Why Any Deal For Hulu Is Unlikely
Late yesterday, the WSJ reported that an unnamed company made an unsolicited offer to acquire Hulu, prompting Hulu's board to consider soliciting other offers. Following up, the LA Times reported that Yahoo is the bidder. However, neither article cited any named sources and so it's unclear how legit any of this is. But even if it is legit, the odds of any Hulu acquisition at this point are actually quite low. Here's why:
Categories: Aggregators, Deals & Financings
Topics: Comcast, Disney, Hulu, News Corp.
-
Digitalsmiths Raises $12.5 Million Series C Round
Video metadata solutions provider Digitalsmiths has closed a $12.5 million Series C round, led by strategic investor Technicolor, with participation by
existing investors .406 Ventures, Aurora Funds, Chrysalis Ventures, Capitol Broadcasting and Cisco. With the financing Digitalsmiths has raised a little over $30 million.
Ben Weinberger, Digitalsmiths CEO and Co-Founder told me that the round was oversubscribed and that additional funds are also available. The new round will support increased marketing and sales efforts for Digitalsmiths' search and discovery solutions targeted to premium video providers. The round will also support planned international expansion.
Categories: Deals & Financings, Technology
Topics: Digitalsmiths, Technicolor
-
Zixi Raises $4 Million for Pristine HD Video Delivery
Zixi, a Boston-area company that enables HD video delivery through the public Internet, announced its first round of $4 million today from Schooner Capital, Sid Topol (founder of Scientific Atlanta) and Reese Schonfeld (former CEO of CNN). Zixi's software optimizes network bandwidth while minimizing delays typically found when initiative playback and eliminating buffering. Zixi does this by adding its own software layer geared for video delivery on top of standard Internet delivery protocols. Zixi works for both on-demand and live streaming video.
Categories: Deals & Financings, Technology
Topics: Zixi
-
VideoNuze Report Podcast #94 - Apr. 8, 2011
I'm pleased to present the 94th edition of the VideoNuze Report podcast, for April 8, 2011.
In this week's podcast, Daisy Whitney and I discuss Q1 '11 financings and M&A for online/mobile video companies. In Monday's post I wrote that at least $477 million was raised in Q1, which is a new record quarter since I began tracking activity 2 years ago. I break down the numbers and Daisy and I discuss what they mean.
Then I add a little more detail to my post from yesterday announcing the first 8 charter partners and 2 keynote speakers for ELEVATE: Online Video Advertising Summit on Tues., June 7th in NYC. The conference is really shaping up and there will be lots of additional news in the coming weeks.
Next week finds Daisy at Ad:Tech and I'll be in Las Vegas at the NAB Show. We're hoping our schedules coincide so we can present podcast #95 next Friday!
Click here to listen to the podcast (12 minutes, 20 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Deals & Financings, Podcasts
Topics: Deals and Financings, Podcast
-
At Least $477 Million Raised By Private Online/Mobile Video Companies In Q1 '11
Private online and mobile video-related companies around the world raised at least $477 million in Q1 '11 providing more evidence of intense investor interest in the space. Of the total, approximately $340 million was raised by international companies, with approximately $137 million raised by U.S. companies. The international total was dominated by Softbank's $250 million investment for a 35% stake in China's Synacast Corporation, which operates the "PPTV" online TV service. The other significant international financing was Orange's 58.8 million euro (approximately $83 million) investment in video aggregator Dailymotion, for a 49% stake.
In the U.S. 15 financings were reported, with almost 80% of the amount collectively raised by 6 companies: SnagFilms ($10M), Auditude ($11M), Kaltura ($20M), boxee ($16.5M), Adap.tv ($20M) and TidalTV ($30M). As has been typical in prior quarters, all of these companies are involved in or rely on online video advertising in one way or another.
Q1 also produced at least 15 online/mobile video M&A deals, the most since VideoNuze began tracking the market nearly 2 years ago. The focus of these deals was varied and occurred both internationally and in the U.S. In the former category, examples included Amazon's acquisition of remaining shares of LOVEFiLM (the "Netflix of Europe"), AOL Europe's acquisition of video distribution network goviral and Prague-based KIT Digital's rollup of KickApps, Kyte and Kewego. In the U.S. some of the noteworthy deals included Cisco's acquisition of video encoder Inlet Technologies, YouTube's buyout of independent video producer Next New Networks, Tremor Media's acquisition of mobile video ad firm Transpera and CBS Interactive's acquisition of online video guide Clicker.
Categories: Deals & Financings
Topics: Deals, Financings
-
EXCLUSIVE: Netflix to Acquire HBO, Dissolve Channels Into Streaming Library for iPad Use Only
VideoNuze has learned that Netflix has struck a deal to acquire HBO from Time Warner and intends to dissolve HBO's linear cable channels, with its programs to be incorporated into Netflix's streaming library, available solely on the iPad. Terms of the deal are not yet known, but it is expected to be for stock only, with Time Warner becoming the biggest shareholder in Netflix. VideoNuze interviewed all the key participants late last night.
The deal is a stunning move for all parties, and reflects the fast-changing nature of the online video and pay-TV industries. First and foremost, the deal appears to be a stark reversal of opinion by Time Warner CEO Jeff Bewkes
who has consistently diminished Netflix's prospects. Bewkes commented, "My informal recent remarks, comparing Netflix's rise to the Albanian army's chances of taking over the world got me thinking afterwards, geez, is it possible that I've underestimated Albania's might, and therefore Netflix's potential? So I decided to study up on my history, and it turns out that back in 1378, Albania actually conquered almost three-quarters of the world's population. That was an eye-opener and really made me second-guess myself."
Categories: Cable Networks, Deals & Financings
Topics: Apple, HBO, iPad, Netflix
-
Blockbuster Staggers to a Sale
The wrangling over what should become of Blockbuster's carcass seemed to reach a resolution yesterday as the judge presiding over the company's bankruptcy approved its proposed auction process. For those who haven't been following the drama, potential acquirers - mostly a group of hedge funds - have been fighting with movies studios that are Blockbuster's creditors, over the company's fate, with some recently calling for an outright liquidation.
The Blockbuster story is a cautionary tale about what happens when companies don't pay attention to changing market conditions. No company was better positioned, and with a better brand, than Blockbuster, to take advantage of the shift to digital distribution. But Blockbuster was slow to adapt, its strategy and execution were flawed, and it had the bad luck of running into an extremely capable upstart in Netflix.
Here's a picture of the last Blockbuster in my area I snapped earlier this week; I'm guessing you've witnessed this scene in your neighborhood as well. You gotta love the irony of the tag line "THIS LOCATION ONLY."
Categories: Deals & Financings
Topics: Blockbuster, Netflix
-
VideoNuze Report Podcast #91 - Mar. 11, 2011
I'm pleased to present the 91st edition of the VideoNuze Report podcast, for March 11, 2011.
In this week's podcast, Daisy Whitney and I discuss YouTube's acquisition of independent online video producer Next New Networks. As I explained in my post earlier this week, while it's tempting to see Google/YouTube becoming a content creator itself with the deal, instead I think of the move as taking a page from the cable industry's early playbook. YouTube is trying to play the role of "strategic catalyst" for online video creators, similar to what early cable TV operators did for early cable TV networks. Daisy doesn't see it quite the way I do however, which might suggest I'm giving YouTube more credit than they deserve. We'll see how it plays out over time.
Then we talk briefly about "ELEVATE: Online Video Advertising Summit," a new 1-day conference I announced earlier this week. Note, just as I finish up inviting Daisy to participate, the gremlins attacked and the podcast recording unexpectedly stopped. For those of you interested in her response, she said "she'd be happy to join us, that is if she's not in Paris at the time." Ahhh, choices, choices.
Click here to listen to the podcast (13 minutes, 41 seconds)
Click here for previous podcasts
The VideoNuze Report is available in iTunes...subscribe today!
Categories: Aggregators, Deals & Financings, Events, Indie Video, Podcasts
Topics: ELEVATE, Next New Networks, YouTube
-
With Next New Networks Deal, YouTube Evokes Cable's Early Days
With Monday's announcement that YouTube is acquiring independent video producer Next New Networks, plenty of people have concluded that Google
and YouTube have officially become content providers themselves - something the companies swore they'd never become. While it's tempting to conclude this, my take is that YouTube is actually lifting a page from the cable industry's evolution - seeking to act less as content creator, and more as a "strategic catalyst" for the online video era. Let me explain.
Back in the early days of cable, its primary value proposition was purely improved reception. Many of the earliest cable systems were built in communities where over-the air broadcast signals were poor. Once those initial systems were built and then subsequently upgraded to have expanded capacity, the industry recognized that it needed to hang its hat on more than just the proposition of "better picture quality." Thus began a frenzied process of creating new specialty channels to appeal to specific audience segments. Initially these channels offered re-runs and other inexpensive shows they could get their hands on (who remembers that ESPN's early days featured ping-pong?). Eventually however, these channels would become original programming powerhouses in their own right.
Categories: Aggregators, Cable Networks, Cable TV Operators, Deals & Financings, Indie Video
Topics: Liberty Media, Next New Networks, TCI, YouTube
-
Kaltura Raises $20 Million, Now Serving 100K+ Publishers
Open source online video platform Kaltura is announcing this morning that it has raised a $20 million round, led by Nexus Venture Partners, including Intel Capital and existing investors .406 Ventures and Avalon Ventures. It's not clear what funding to date is since Kaltura didn't disclose the size of its
last round. Kaltura also announced it is now serving over 100K publishers, which it believes is more than all of the other proprietary OVPs combined.
Kaltura CEO Ron Yekutiel has emphasized Kaltura's open source approach from the company's inception. In my interactions with him, he has likened Kaltura to doing for video what RedHat did for operating systems and MySQL did for databases, with each driving open source success. Since Intel Capital and Nexus have both been involved with these two companies, and Nexus' Narun Gupta, who's on RedHat's board will now join Kaltura's board, Kaltura's positioning gains additional credibility with the new financing.
Categories: Deals & Financings, Technology
Topics: Intel Capital, Kaltura, Nexus Venture Partners
-
Quite a Week for M&A In Online/Mobile Video
It's been quite a week for M&A in online and mobile video. On Monday, KIT Digital announced it was acquiring Kewego, KickApps and Kyte. Then today Cisco bought Inlet Technologies to flesh out their Videoscape platform and Tremor Media reportedly acquired mobile ad manager Transpera. That's a lot of activity for just one week, and points to how key players are jockeying for bigger slices of the online and mobile video market. The trend will no doubt continue.
What do you think? Post a comment now (no sign-in required).
Categories: Deals & Financings
Topics: Cisco, Inlet, Kewego, KickApps, KIT Digital, Kyte, Transpera, Tremor Media
-
MediaMorph Lands $2 Million To Help Track and Manage Digital Assets
MediaMorph, a Software-as-a-Service provider that helps media companies track and manage their digital businesses across platforms, has raised an additional $2 million. The investors were not disclosed. The new financing brings to $3.5 million the total
amount raised to date. MediaMorph has also announced a business development alliance with United Talent Agency.
Recently I spoke with Shahid Khan, MediaMorph's chairman and chief strategist to learn more about MediaMorph. Shahid was formerly a senior partner at IBB Consulting, a well-known firm in the online video and digital media industries.
Shahid explained that MediaMorph is trying to address the increasing business complexity media companies experience as they digitally distribute their video and other assets to multiple outlets. MediaMorph isn't a content or ad management provider, rather, it offers the software tools to track and report on where assets have been scheduled and delivered so that accurate reports and billing can be performed.
Categories: Deals & Financings, Technology
Topics: MediaMorph
-
KIT Digital's Deals Signal "Race to Scale" is Well Underway
This morning KIT Digital announced 3 acquisitions, of social/video platform
KickApps, online video platform Kyte and French OVP Kewego. The aggregate consideration is $77.2 million, as follows, according to the press release:
KickApps - $44.7 million, all in KIT stock (KickApps had $12 million in 2010 revenues and had raised approximately $32 million)
Kewego - $26.7 million, including $11.7 million in cash and $15 million in KIT stock (Kewego had $10.2 million in 2010 revenues)
Kyte - $5.7 million, including $3.1 million in cash and $2.6 million in KIT stock (Kyte had $3.7 million in 2010 revenues and had raised more than $23 million)
This morning I talked to Kyte's COO Gannon Hall (who will relocate to KIT's Prague headquarters as EVP of Marketing) and KickApps' CEO Alex Blum (who will become COO, responsible for product, technology and client services).
Categories: Deals & Financings, Technology
Topics: Kewego, KickApps, KIT Digital, Kyte
-
Vook Books a $5.75 Million Series A round
(Friday update #5) Vook, which publishes digital versions of books, featuring video, images and social sharing alongside the text, announced a $5.75 million Series A round this week from VantagePoint Venture Partners and Floodgate. When I spoke to Vook's founder Brad Inman last June I came away very impressed with his vision for enhancing traditional books with multimedia in thoughtful, innovative ways. Vooks are a perfect fit for the burgeoning universe of e-readers and tablets like the iPad and Samsung Tab. They key for Vook is generating awareness and demand for its new format. Partnerships will be critical.
Categories: Deals & Financings, Friday updates
Topics: Floodgate, VantagePoint Venture Partners, Vook
-
Amazon Acquires LOVEFiLM Making Netflix's European Expansion a Lot Harder
Amazon announced this morning that it has bought the remaining 58% of European DVD-by-mail and online subscription service LOVEFiLM. Amazon
gained its stake in 2008 when LOVEFiLM acquired Amazon's European DVD rental business (Amazon also invested in LOVEFiLM as part of the deal). Given Amazon's position, the new deal, said to be worth around $320 million, was widely rumored.
Though the companies offered no insight in the press release as to what prompted the move, I think it can be interpreted as a bid by Amazon to make Netflix's expansion into the European market much harder. Netflix expanded into Canada last September with a streaming-only service and has continued to beef up the content selection offered there, even as stories have emerged that Canadian broadband ISPs' consumption caps can generate incremental fees for heavy Netflix users. Nonetheless, Netflix has been bullish about its near-term profitability expectations in Canada and executives have made no secret of the company's intention to expand further internationally, with Europe certainly in the bullseye.
Categories: Aggregators, Deals & Financings, FIlms, International
Topics: Amazon, LOVEFiLM, Netflix
-
In Approving Comcast-NBCU, the FCC Blesses the Cable Model
Reading yesterday's FCC press release approving the Comcast-NBCU transaction, my main reaction was that rather than using the opportunity to try to force fundamental changes in the core cable business model, the FCC, through its key conditions, instead essentially blessed it.
Comcast - and by extension other pay-TV operators - must be delighted that their core packaging and pricing philosophies were basically untouched. Cable networks and studios should also be happy that their ability to monetize
through the monthly affiliate model remained intact as was their flexibility to monetize online (mostly). As a result, the large ecosystem of participants in the video ecosystem (e.g. talent, production personnel, etc.) should also be happy that their economic well-being won't be disrupted. Lastly, investors in the pay-TV ecosystem should also be happy; it's always a good day when the government chooses not to meddle in markets that are working pretty nicely from investors' perspective.
To get more specific, in the press release there are 7 key conditions under the heading, "Protecting the Development of Online Competition" that Comcast and/or Comcast/NBCU are required to follow. These relate to online video and I have listed them out below. After each one I have added my analysis/reactions.
Categories: Cable Networks, Cable TV Operators, Deals & Financings, Regulation
Topics: Comcast, FCC, NBCU, Netflix
-
5 Items of Interest for the Week of Jan. 10th
Even though I was very focused this week on the CES "takeaways" series, there was still plenty of news happening in the online and mobile video industries. So as in the past, I'm pleased to offer VideoNuze's end-of-week feature highlighting 5-6 interesting online/mobile video industry news items that we weren't able to cover this week. Enjoy!
Level 3 fights on in Comcast traffic dispute
Level 3 is showing no signs of relenting on its accusations that Comcast is unfairly trying to charge the CDN for Internet traffic it delivers to Comcast's network. In an interview this week, Level 3 said it may use the "Open Internet" provisions of the FCC's new network neutrality rules to press its case. Level 3's challenge is coming at the 11th hour of the FCC's approval process of the Comcast-NBCU deal; it's not really clear if Level 3 is having any impact on slowing the approval, which appears imminent.
Comcast-NBCU deal challenged over online video proposal
Speaking of challenges to the Comcast-NBCU deal, word emerged this week that Disney is voicing concern over the FCC's proposed deal condition that would force Comcast to offer NBC programming to any party that had concluded a deal with one of NBC's competitors for online distribution. The Disney concern appears to be that the condition would have an undue influence on how the online video market evolves and how Disney's own deals would be impacted. While the FCC should be setting conditions to the deal, the Disney concerns highlights how, in a nascent, fast-moving market like online video, government intervention can cause unintended side effects.
YouTube is notching 200 million mobile video views/day
As if on cue with my CES takeaway #3, that mobility is video's next frontier, YouTube revealed this week that it is now delivering 200 million mobile views per day, tripling its volume in 2010. That would equal about 6 billion views per month, which is remarkable. And that amount is poised to increase, as YouTube launched music video site VEVO for Android devices. YouTube clearly sees the revenue potential in all this mobile video activity; it also said that it would append a pre-roll ad in Android views for tens of thousands of content partners.
Google creates video codec dust-up
Google stirred up a hornet's nest this week by announcing that it was dropping support for the widely popular H.264 video codec in its Chrome browser, in favor of its own WebM codec, in an attempt to drive open standards. Though Chrome only represents about 10% market share among browsers (doubling in 2010 though), for these users, it means they'll need to use Flash to view non-WebM ended video. There are a lot of downstream implications of Google's move, but for space reasons, rather than enumerating them here, check out some of the great in-depth coverage the issue has received this week (here, here, here, here).
Netflix usage drives up Canadian broadband bills
An interesting test of Canadian Netflix streaming showed that a user there might have to pay an incremental $12/month under one ISP's consumption cap. That would be more than the $7.99/mo that the Netflix subscription itself costs, leading to potential cord-shaving behavior. This type of upcharge hasn't become an issue here in the U.S. because even ISPs that have caps have set them high relative to most users' current consumption. But if streaming skyrockets as many think it will, and the FCC allows usage-based billing, this could fast become a reality in the U.S. as well.
Categories: Aggregators, Broadband ISPs, Broadcasters, Cable TV Operators, CDNs, Deals & Financings, International, Mobile Video, Regulation, Technology
Topics: Comcast, Disney, FCC, Google, Level 3, NBCU, Netflix, WebM, YouTube
-
Jinni Raises $5 Million Series B For Video Discovery
Jinni, whose video discovery engine is based on "taste and mood," is
announcing that it has raised a $5 million Series B round led by Belgacom (Belgium's leading telecom) and an undisclosed tier 1 consumer electronics company. The company had previously raised $1.6 million in December, 2009.
Categories: Deals & Financings, Video Search
Topics: Jinni
-
Another $180 Million Raised by Video Companies in Q4 '10, Capping a Banner Year
Private video-related companies raised at least $179.8 million in Q4 '10, bringing their total raised in 2010 to just over $750 million, according to public sources I track. Among the 22 companies raising funds the largest reported were by 3-screen video processor RGB Networks ($20M), which also acquired RipCode, a mobile video solutions provider in June 2010; Internet TV platform Verismo ($17M); and service provider software company BNI Video ($16M). Once again, the most popular categories for financings were software, content delivery and advertising-related; aside from $1M debt that Next New Networks raised, no new original video content companies were funded.
As the chart below shows, the Q4 total is a solid bounce-back from Q3's $100M (after excluding the $50M raised by Chinese video site Tudou). It further demonstrates the enthusiasm investors have for the online and mobile video sectors, which was driven throughout the year by positive news/research underscoring strong consumer adoption.
Categories: Deals & Financings
-
Online/Mobile Video's Top 10 of 2010
2010 was another spectacular year of growth and innovation in online and mobile video, so it's no easy feat to choose the 10 most significant things that happened during the year. However, I've taken my best shot below, and offered explanations. No doubt I've forgotten a few things, but I think it's a pretty solid list. As much as happened in 2010 though, I expect even more next year, with plenty of surprises.
My top 10 are as follows:
Categories: Advertising, Aggregators, Broadband ISPs, Broadcasters, Cable Networks, Cable TV Operators, Deals & Financings, Devices, Mobile Video, Regulation, Satellite, Technology, Telcos
Topics: 4G, Android, Apple, Google TV, iPad, Net Neutrality, Netflix, YouTube
Posts for 'Deals & Financings'
Connect with VideoNuze
Exclusive News Roundup
- YouTube Reaches 125 Million Subscribers, Announces ‘Premium Lite’ Tier Billboard
- Netflix Content Spending, Set to Hit $18 Billion in 2025 Variety
- Prime Video is beginning an AI dubbing pilot program for select movies and series
- WBD’s New Structure Will Provide Opportunity to ‘Go On Offense or Defense’ Amid Linear Upheaval The Wrap
- Amazon's Latest Tool Automates Big Parts of Buying TV Ads, Vying With Google and The Trade Desk Adweek
- Hulu prematurely ended its Oscars stream right before the final awards The Verge
