Veoh, one of many Web video players that isn’t YouTube, is trying to carve out a niche for itself in a landscape dominated by Google’s site. The prospect of this doesn’t scare off CEO Steve Mitgang, who gave us an upbeat assessment of his business:
Veoh has plenty of distribution deals with CBS (CBS) and the like, but it doesn’t seem to need them. Mitgang says that professional, studio-produced shows account for just 15% of the viewing on the site. The rest of it is user-generated, with a smattering of indie experiments like “Prom Queen.”
Miraculously, and contrary to the experience of most video sites including YouTube, Mitgang says Veoh can sell ads against “the majority” of its user-generated content. How? He says the company vets its clips and rejects anything that doesn’t conform to an “HBO standard” of nudity, profanity, etc. Veoh doesn’t make much money from TV content, but can target, say, a “CSI” viewer while they’re watching an episode of Michael Eisner’s “All For Nots.” Ad rates for ad banners are in the $8-$10 CPM range, he says, while video ads are landing $20 CPMs.
Steve also talked up VeohTV, a TiVo-like application launched last summer that allows higher-resolution, full screen viewing as well as a DVR-like recording ability. It has 3.5 million active users, Steve said, which surprised us since the app gets next-to-no publicity.
And yes, Veoh is raising money. Steve says the company is reducing its (undisclosed) burn rate, but will need more cash to build up its salesforce and to build out its ad-targeting capabilities: “This is a complex business that has to operate at scale.”
See Also: Veoh: Raising Another $40 Million?
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