Web video startup Blip.TV just closed a $10.1 million financing round to build out a sort-of “TV network of the future.”Canaan Partners, which sold Associated Content to Yahoo yesterday for roughly $100 million, led the round. Bain Capital, a previous investor, chipped in.
NYC-based Blip is basically building the web-powered equivalent of today’s TV networks: It provides video hosting technology, distribution technology, analytics, ad sales, and audience development services to some 44,000 independent show producers, serving up 90 million video views a month.
Blip cofounder and CEO Mike Hudack tells us the company will use the money to especially build out its content and audience development team. The company also says it’ll build out its international sales force and work on more products.
Blip, which is 5 years old this year, has certainly grown at a much different clip than YouTube, which just turned 5. While Google’s YouTube is serving up 2 billion videos a day, Blip is serving up a tiny fraction of those.
But Blip now focuses pretty much all of its efforts on episodic, quality video, which it can sell ads against. As a result, Blip says it can sell ads on 80% of its video, up from about 40% in 2008.
And Hudack tells us that’s allowing some of Blip’s show producers to do their shows as full-time gigs: More show producers than ever before are making 6-figure amounts from Blip, he says.
Here’s Blip’s release:
BLIP.TV RAISES $10.1 MILLION IN FUNDING
Online Media Company Secures Capital from Canaan Partners and Bain Capital Ventures.
NEW YORK, NY – May 19, 2010 — Next generation television network blip.tv today announced the closing of its third round of institutional capital, led by Canaan Partners and existing investors Bain Capital Ventures. The company will use its new funding to accelerate the growth of the independent Web shows that blip.tv hosts and distributes, expand its content services team, continue to grow its international advertising sales force and develop new products for viewers and producers.
“Blip.tv turns five this year, and I couldn’t be happier with our success to date and our growth plans for the future,” said blip.tv CEO and co-founder Mike Hudack. “We started in 2005 with a simple mission: to change the entertainment industry by making independent show production sustainable and scalable. We’re moving on to the next phase of executing against that mission, and with help from both Canaan Partners and Bain Capital Ventures I’m confident that we’ll be successful. We’re making more shows sustainable every single day, and now we’re going to accelerate that change even faster. This is an extremely exciting time.”
More than 44,000 independent show producers visit the blip.tv show creator dashboard every day to review statistics, engage with their communities of viewers, manage their shows, and release new episodes across blip.tv’s extensive distribution network. Together these shows attract more than 90 million video views a month. 80-five per cent of those views are paired with targeted, direct-sold advertising from brands such as PepsiCo, Chevrolet, Samsung, Starbucks, AT&T and Scion.
“We’ve been following blip.tv’s growth for years, and we’re excited to invest in the company as it continues to change the entertainment industry,” said Warren Lee, Venture Partner at Canaan Partners. “Blip.tv has executed on its vision, and the company is creating a new Web television industry that is drawing top talent from traditional television networks, the film industry and garages across America. We look forward to working with Mike and his team to continue transforming entertainment together.”