I'm pleased to present the 237th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.
This week we dive deep into the question of whether YouTube is indomitable or vulnerable to new competitors. Colin observes that the 45% revenue split YouTube keeps has opened the door for everyone from Vessel (former Hulu CEO Jason Kilar's startup) to Yahoo to others to approach YouTube stars about better deal terms. Major MCNs like Maker Studios (acquired by Disney) and Fullscreen (rumored to be acquired by Otter Media) are expanding beyond YouTube with their own properties.
However, I don't see much changing with the revenue split, except maybe the largest players getting improved terms. For both established and startup content providers, YouTube offers unparalleled audience reach, publishing tools and monetization. I offer a few examples as proof of YouTube's power: PewDiePie (which now has an astounding 29 million subscribers), Vice News (a pure YouTube news channel now able to take over the NYTimes.com's masthead ad) and Sorted Food (a British startup that has gained 870K+ subscribers on YouTube and now tops its Food category).
For all of these content providers and tons of others, YouTube provides an open, flexible distribution platform unlike anything before it in the media business. Ad splits will continue to be a bone of contention, but YouTube is poised to only get stronger going forward.
European broadcast and entertainment giant RTL Group has bought a 65% stake in online video ad platform SpotXchange for $144 million, plus an earnout based on performance and an option to buy the remaining 35%. SpotXchange will continue to operate as an independent company, with CEO Mike Shehan saying that funds will be used to accelerate growth, particularly in Europe.
Cloud-based online video publishing company thePlatform has partnered with Verizon Digital Media Services to help drive multi-screen video delivery for pay-TV operators and content providers. Under the deal, VDMS services have been integrated with thePlatform's mpx video management system, forming a solution that will be jointly sold. The primary benefit is streamlined online video workflow which can be managed from a unified console.
Key to the integration is Verizon's single-format video acquisition and distribution capability, which is primarily attributable to VDMS's acquisition of upLynk last November. upLynk enables content to be encoded one time, with the resulting adaptive stream working across all devices, thereby reducing complexity. upLynk complements the EdgeCast content delivery network which Verizon also acquired late last year.
As devices continue to proliferate, reaching viewers across multiple screens is becoming an imperative for advertisers. At the recent Video Ad Summit, one of our sessions focused on how advertisers are beginning to do this and what challenges remain. Participants included Larry Adams (Mindshare), Josh Chasin (comScore), Rob Holmes (Comcast), Chuck Parker (Brightcove), Katie Seitz (Tremor), with moderator Jeff Lanctot (Mixpo).