One conundrum shared by all video sites: what to do about international traffic, which costs an awful lot in terms of bandwidth but brings in little-to-no revenue.
Veoh’s solution: Stop serving a bunch of its international customers. Liz Gannes at NewTeeVee says Veoh is now accepting visitors from just 33 countries and has locked out the Dominican Republic, Argentina, Lebanon, Brazil, Saudi Arabia and others. Wikipedia has a list of 51 barred countries.
Presumably the countries that made Veoh’s cut are the ones in which it has a snowball’s chance of earning an ad dollar (or peso, or real, etc). Veoh spokeswoman Gaude Paez said the countries blocked represent 10% of Veoh’s user base. The move, she said, is about “re-focusing” resources: “as a startup we just have to make choices.”
Earlier this year, we reported that Veoh was trying to raise another $40 million, which would double its total raise to-date. We don’t have an update on how that’s going — if you’ve got a sense, leave us note in comments or drop us a line at [email protected]
Earlier: Veoh Raising Another $40 Million?
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