17 Comments

Summary:

Ooyala, which we just named to our NewTeeVee’s Next Big Thing list tonight, has raised $10 million in Series C funding in a round lead by Rembrandt Venture Partners and including previous investor Sierra Ventures. The Mountain View Calif.-based video platform startup has now raised a […]

Ooyala, which we just named to our NewTeeVee’s Next Big Thing list tonight, has raised $10 million in Series C funding in a round lead by Rembrandt Venture Partners and including previous investor Sierra Ventures. The Mountain View Calif.-based video platform startup has now raised a total of $20 million.

Ooyala, which recently hired CEO Jay Fulcher, said it has more than 500 customers delivering hundreds of millions of streams per month, and it plans to expand into Europe next, as well as onto the iPhone and Android and Microsoft Silverlight.

Alongside its funding, the company released a fact-sheet to the press with some fighting words about its competition. See below — ouch!

Q. Who are your biggest competitors?

A. The incumbent solutions we compete against most often are the homegrown
implementations of video. There are over 10,000 of these in the top 100,000 Quantcast
sites. Outside of that, we believe that Brightcove is next closest competitor.

Q. What do you think of the recent acquisition of the Feedroom by KIT Digital? What do you
think the OVP landscape will look like by the end of 2010?

A. Like so many companies in the OVP space that were started in the late 90s or earlier part
of this decade, the Feedroom stopped building technology and focused on building
custom video solutions, which is not a business that can easily scale. As a result, their
revenues were stunted and ultimately absorbed by KIT Digital. For 2010, I think many of
the small providers like Delve Networks, Episodic.com, Twistage will fall by the way-side.
Companies that already have some level of success but not very much technology, like
Fliqz and Multicast, will be consolidated into a company that primarily provides
professional services. Depending on what Brightcove’s investors plan to do, they may
also be taken out in the next 6-12 months.

  1. Uh, and what about ThePlatform, owned by that little company called Comcast? http://tvnewsstream.com/uh-ooyala-theres-a-little-company-called-thep

    Share
  2. How classy… Just goes to show the immaturity of management… How ironic would it be if Ooyala shutdown and Brightcove survived?

    Share
  3. Nice billboard material for Twistage, Fliqz, Multicast, Episodic, Delve, and BC.

    I wonder what value Ooyala found in poking the competition?

    Share
  4. Mike Gallagher Tuesday, October 13, 2009

    Very classy. How much you want to bet that they’ve lost a bunch of business lately to the 3 they diss (Delve Networks, Episodic.com, Twistage)? I think they are right about Fliqz et al though. No unique technology. Just a low price point. They’ll be squeezed between the free (YouTube et al) and the low-end offerings from some of the aforementioned dissed companies. The fact is the market is big and will support various angles/niches.

    Liz: I bet Delve, Episodic and Twistage can validate my hypothesis of Ooyala winning competitive bids.

    Share
  5. Not classy at all. I am not sure where this immature atitude comes from. Its one thing to show confidence about execution which would have been great but to completely “diss” the competition was irrelevant. Maybe this is how they might treat customers the bigger they grow and more resources they attain. Something to keep an eye on…

    Share
  6. Agreed, Mike. The market is definitely big enough – especially now – to support several different niches and angles. Not to mention up and comers that Ooyala didn’t call out who are making a splash in their own right (Digitalsmiths, Unicorn Media, etc.). And even further, they’re ignoring how many organizations are using their own resources to build in-house solutions because they have to; there just aren’t many third party providers who have a professional grade backend platform. Simply putting a video player on a website isn’t a great business – providers who offer a flexible and scalable solution that lets companies upload and manage their assets, syndicate them to any device or site, monetize them and then analyze their audiences are going to have the most success. There’s still just too much innovation happening to be making predictions about who’s going to be the last one standing.

    Share
  7. Not a bad summary of the US VMS providers, but Ooyala’s technology is very clunky and basic from my experience, so they should be careful of throwing stones in a glass house. Also, since they recently claimed to be profitable, why are they diluting themselves so badly ?

    Share
  8. How is Ooyala not a homegrown implementation of video.
    I can’t see there’s anything unique about Ooyala either? We’re all on the same ground technologies wise. It’s a matter of how well you tell your stories and make your customers believe you have some unique technologies.

    Share
  9. Jay – You should be ashamed of yourself. It just goes to show you how little you actually know about this industry. I’ve already heard of at least three large deals that you LOST because your team was found to be both cocky and immature. Sure, you have interesting technology, but so do twenty other online video platforms… and most everyone else provides oustanding service along with it! I thought perhaps that “the boys” brought you in to raise the maturity level, but it appears that you are just another child in a long line of in-house foosball champions.

    Share
  10. [...] funny how fundraising is such a widely written about activity when it really has little to do with product or business [...]

    Share

Comments have been disabled for this post