Heavy.com Continues Hiring Frenzy, Adds CTO

Heavy.com hired Scott Penberthy from Photobucket as CTO, a day after naming Eric Hadley from Microsoft head of sales and marketingMore from MediaPost.

Heavy has raised a big war chest ($20 million in January) and is spending it rapidly.  As long as the burn-rate is kept under control, this is a sensible strategy.  We expect to see a major shakeout in the online video business in the not-so-distant future, and the survivors will be the ones with scale and a highly targeted audience.  Although the vast sums being thrown at dozens of “me too” players is highly reminiscent of the late 1990s, the companies, at least, are acting rationally: When you know that 75% of the competitors in your space will croak, it is wise to raise (and spend) as much money as you possibly can.

Related: Economics of Online Video: One Tough Business.  Heavy Keeps Hiring