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Google Invests In Machinima YouTube Channel

Discussion in 'Off-Topic Discussion' started by CatfishRivers, May 7, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Google Invests in Machinima YouTube Channel | WebProNews (click for full article)

    "Google is putting more of it money into content and investing in the popular YouTube channel Machinima. AllThingsD is reporting that Google will invest in Machinima during its current fundraising round which is expected to raise more than $30 million. This will raise the value of the Machinima to around $190 million.


    Machinima is a video game news and pop culture YouTube channel that caters to a younger male demographic. According to their website, the channel had 1.52 billion video views in March of this year and 11 billion total views last year. There is also evidence that those viewers are watching Machinima for longer than any other YouTube partner channels. With such explosive growth, it's easy to see why Google might want to invest in the company to make sure it keeps its content on the YouTube platform.


    The AllThingsD report states that this is the first time that Google has invested in a YouTube content company. Last week Google announced that it would spend $200 million promoting premium YouTube channels. These news items, and recent Google TV announcements, mean that Google is well-positioned to take in large ad revenues from internet TV. Something tells me that this is a do-or-die time for traditional TV networks, which won't be able to operate with their current business models a decade from now.


    Channel launches on YouTube have been something of a cliche lately. Felicia Day, VICE, Lionsgate, and the Center for Investigative Reporting have all launched YouTube channels within the past month. It's clear that the YouTube platform is finally mature enough, and the ad revenues are significant enough, for professional production companies to use as a broadcast medium. "
     
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Google investing in Machinima and the future of TV | The Verge (click for full article)

    "According to a new report from All Things D, Google is getting set to invest in Machinima, which racks up more than a billion views each month of its gaming videos and series. This is a different kind of investment than the hundreds of millions Google has been handing out to create YouTube channels.


    With this investment, Google is getting equity in Machinima, betting on the long term future of web TV and taking a stake in one of that market's big stars. It's a move that parallels the way traditional TV companies like NBC invested in cable channels or web plays like Bravo, A&E and Hulu.


    The aim with YouTube channels is to have more high-end series to advertise against and to showcase on connected televisions. YouTube has backed everything from gaming to health to comedy to sports, including our sister site, SB Nation. But the YouTube Channel money is a loan, with the partners getting to keep a cut of their ad revenue after they pay back whatever money they took from Youtube upfront.



    Machinima is already a massive player, with 154 million unique visitors and 1.52 billion views this past March. It doesn't need any help on YouTube. Having Google as an investor and ally in the larger web TV wars, however, is a offer few companies would refuse. "
     
    Last edited: May 7, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    Google Invests In Machinima YouTube Gamer Channel - Peter Kafka - Media - AllThingsD (click for full article)

    "Google has been handing out money to video makers so they'll make more stuff for YouTube. Now it's putting money into a video maker itself.


    The search giant is set to invest in Machinima, one of the most popular networks on YouTube, via a funding round that should close within a month. Machinima focuses almost exclusively on YouTube videos for and about videogame players, and generates more than a billion views a month.


    People familiar with the round tell me it should end up raising more than $30 million, and will value the company at around $190 million, post-funding. No comment from Google or Machinima.


    Google will be one of several investors backing Machinima in this round. And even if it put in the entire amount itself, it wouldn't be material for a company that did $8.1 billion last quarter.


    But the move has significant symbolism, because it's the first time Google has openly backed a content company by taking an equity stake. YouTube is spending more than $100 million on its much-publicized channel program, but it is writing those checks as loans to content makers, and it recoups the money via ad sales.


    The deal may ruffle some feathers among other video makers, some of whom already complain that YouTube favors Machinima and a handful of prominent content partners. And people familiar with the funding round tell me that at one point Google considered routing the investment through its Google Ventures arm to try to allay those concerns.


    The counter to that argument: Why shouldn't Google back content producers who make stuff for its properties? After all, YouTube is trying to become more like TV. And most of the big TV networks own their own studios outright. "
     
    Last edited: May 7, 2012

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