BUSINESS BLOGS
BUSINESS BLOGS
category: business
14 May 2007

Are the rumors true?  I just spoke to Howard Lindzon (as a fellow investor, video content producer, we’ve had some exchanges on the future of web video) and he said, and I quote: “I don’t start the rumors, and I don’t comment on them.”

Take it was you wish, but if the rumors are true, then CBS just bought his Wallstrip for a reported $5M.

If it’s true, then good for him and his team.

As a video producer though, it’s nice to see broadband video getting its due.  Wallstrip is a vertically focused finance content producer, the type of site a WatchMojo.com would partner with, for example.  WatchMojo.com is very different in that we go for a broader content base covering all categories of interest to advertisers.

I won’t comment on whether $5M is too low or too high, I’m not into second guessing on rumors, when the numbers are made public, I’ll comment (assuming it’s the real deal).  But some observations as a fellow content producer:

- WatchMojo.com is by far one of the largest content producers in terms of broadband platforms, with a library of 4,000 1 to 3 minute video clips.  We have content on everything imaginable: fashion, food, video games, cars, sports, travel, and much more.

- WatchMojo.com has built one of the largest syndication networks of any online-only video producer: we’re one of the few online-only producers on Joost, as a few others I can’t name yet, even though they might be live.  Last year we did over 1M streams on YouTube, this year we might do 10M.  One syndication partner’s revenue grew 30,000% in 3 months, etc.  If you line up all video portals, we’re on all of them, in 3, 6 or 9 months when people look at reach of video content throughout the Web’s leading video viewers/sites, trust me, we’ll be pretty darn close to 75% penetration if not more.

- we’re creating custom video for media companies and ad agencies.

Wallstrip apparently does little or no revenue, we were profitable in Q1, 2007.

All to say, I have been self-financing this company for what seems to be like forever, and I love that fact. 

I sold $8M worth of ads in my old job and trust me, no one will be able to monetize video content like we will.  We’ve started in fact.

I have no idea if the rumors that CBS just bought Wallstrip for $5M is right on, but regardless, it does once again validate what I’ve been saying all along, and what CBS Interactive CEO Quincy Smith confirmed when I was at the Economics of Social Media, made-for-web video content’s value is growing quickly, rising fast.  CBS has all of the content in the world from TV, but what compelled them to plunk over $5M for Wallstrip?

Anyway, also worth reading from previous stuff I’ve written:

Is Digital Content the New Software?

http://www.watchmojo.com/web/blog/?p=1460

Understanding TV execs angst and envy:

http://www.watchmojo.com/web/blog/?p=1424

The Commoditization of Distribution and Scalability of Content

http://www.watchmojo.com/web/blog/?p=1300

Are VCs jumping on broadband content bandwagon:

http://www.watchmojo.com/web/blog/?p=1510

Last night I posted that we’re in talks with media companies and VCs are finally knocking on our doors… thanks Howard, you just gave me one more ace to play with…

I won’t comment on that any more, though many are, and some in-the-know are correcting a few inaccuracies, so not 100% if the story is true… but if it is, CBS’ Smith is one aggressive dealmaker, when he said “we don’t compete with Fox, we compete with LonelyGirl,” he wasn’t kidding.