Online Video Is Recession Proof - Video Is Growing
Here is a blog post in Portfolio that talks about online video being recession proof. To me anything online is recession proof if it adds value.
Two funding deals were announced today: $6 million went to Brightstorm, an online educational video content company, from Korean venture firm KTB Ventures; BlipTV, in a second round of funding, got an undisclosed amount from Bain Capital, financial backers of LinkedIn and LaLa Media.
Yesterday, the Chinese online video site PPS.tv announced getting $20 million in third round funding in a deal finalized prior to the Beijing Olympics. Also PPLive is closing in on a round of financing for their third round.
While the deals are small, they nevertheless signal a continued flow of cash into the sector.
Playboy is among those increasing online video already. Last Thursday the company announced it will close its DVD division, cutting 80 jobs and spending $2 million in restructuring costs to instead make its video offerings available only online.
Funding for online video sites has been on the rise. It nearly doubled between 2006 and 2007, from $266.9 million to $460.5 million. In just the first quarter of 2008 alone, over $217.3 million was raised.
Also rising has been the amount of ad dollars going toward online video: eMarketer reports a 55.9 percent increase this year over 2007.