Video startups consolidating; music streaming services expanding; Photography: TV Presenter Djamila Celina Melcherts
In the US, Break Media and Alloy Digital — two long-time producers of video content outside of the YouTube bubble — are expected to announce a merger.
The move is the latest in a long line of video companies in a fragmented market that have decided to consolidate in order to gain more traction from a mass audience.
Earlier this year Maker Studios purchased well-known video site Blip, and last year Alloy acquired DBG. And those that aren’t consolidating are raising massive amounts of funding from Private Equity companies and tech funds to build a business that plays nice with YouTube, but ultimately wants to strike out as its own video network — thus cutting out YouTube’s cut of the revenue made on its content.
As for the merger, both Break and Alloy produce short video clips that are targeted at a younger audience, which make them a good match for each other. The two companies will be rebranded as Defy Media, with Break and Alloy each holding a 50 percent stake in the new venture.
The newly formed Defy Media will now have a combine reach of 30 million YouTube subscribers and about 50 million monthly visitors to both websites .
With solid Private Equity funding the message could be further extended beyond the digital space through established media platforms that connect with consumers as they move throughout their day. The brand message reaches the right audience in the right place, at the right time.
In Europe companies like Zoomin.TV, 5minutenTV (http://5minuten.tv/), SweetnezzTV (http://www.sweetnezztv.nl/) offers viewers the possibility to watch specific content and news whenever and wherever they want to watch it.
These companies with integrated content, distribution, and superb technology offering has proven to be a winning combination for media agencies, advertisers, content providers and distribution partners in the European on-line video industry. Zoomin.TV
Together, these companies with Zoomin.TV leading the pack, are the largest producers of online video news in Europe. All of the them are expanding operations in Europe and beyond.
Long-awaited music streaming service are next; Beats in the US for example will launch its long-awaited music streaming service, Beats Music, within the next few months in the United States. 5minutenTV and SweetnezzTV are launching the same service in Europe.
Bonno van der Putten, Managing Director of Monarch’s Tech fund of Private Equity powerhouse Monarch Capital Partners, says music streaming services for 5minutenTV and SweetnezzTV, will be accessible on the Web, as well as from an iOS or Android device. Support for Windows 8, presumably through a dedicated app, will arrive at a later date.
Music streaming is a highly competitive space at the moment, with established brands such as Spotify, Rdio and Deezer fighting for new subscribers. Microsoft and Google are trying to muscle in with similar offerings, while Apple opts for a Pandora-style approach with its recently launched iTunes Radio
Monarch ‘s Tech fund team consists of former record label executives with extensive business experience and strategic thinking capacity about the licensing, business models and deals that are necessary for a successful music streaming service, says van der Putten.
