From SAI, interviewing former Advertising.com founder Scott Ferber, who has now funded Tidal TV, a new competitor to Joost, Hulu et al.
SAI: How much time do you think you have to sign deals, get customers and build scale?
Ferber: The next six months are important for us. If we get another slug of money and more content, then we’re a player. This is what we’ve done with limited assets. We’ve been open for six weeks and we just started marketing. We are getting thousands of new users a month with no advertising.
Newsflash: $15M is limited assets these days.
One thing Scott is right on:
“deal-making is only getting tougher — he says content owners want guaranteed money with their customary ad splits.”
Yep, you better believe that… and not many content owners will have enough leverage to command guarantees. I’ve outlined the different models of revenue for online video, and I’ve explained why there is such a thing as diminishing returns with incremental distribution.
As a content producer, I love seeing more distributors getting into the space, especially when they’re launched by accomplished media and advertising guys like Ferber, but you know the saying: previous performance does not guarantee future success…
More:
- Advertising vs. Licensing Revenue Models for Video Content Owners
- Successful Revenue Models for Video Content Libraries
- Does the Law of Diminishing Return Apply to The Theory of Content is King?
Disclosure: WatchMojo.com provides content to Joost, Hulu et al.
While many people seem to suggest that the slowing economy will affect funding, it is certainly surprising to see players enter competitive and uncertain spaces with new, large funding rounds.
Examples:
- TidalTV raised $15M, it’s essentially a similar business to Joost and Hulu. Joost has raised $45; Hulu has raised $100M. Disclosure: WatchMojo.com provides content to both Joost and Hulu, along with 100s of other large destinations.
- Panther Express raises $16M. Last time I checked, CDNs were being commoditized. Limelight Networks debuted at $20/share in its much ballyhooed IPO, but it’s now at $7… “up” from its 52-week low because every day a new rumor pops up about a potential acquisition (last week MSFT, this week Level 3).
Anyway, more power to these companies and their backers. Online video streams surpassed search queries, so at the macro level, the market is steamrolling… but does that mean that we need more competitors at the micro level?
Time will tell.
PLAY
