Paid Video M&A: Zipidee Buys TotalVid

Fresh from the womb, Zipidee, a marketplace for educational videos that launched last month, has acquired competitor TotalVid for an undisclosed amount. The purchase doubles Zipidee’s library to more than 10,000 titles.

Whereas many web products and services are increasingly offered for free and ad-supported, San Francisco-based Zipidee is asking customers to pay for what it calls “digi-goods” — primarily audio and video files. The site’s model consists of acquiring the exclusive rights to sell a file online and then deducting 20 percent of any transactions as a processing fee. Three-year-old TotalVid employed another alternative business model: a $9.95 per month subscription fee.

Zipidee CEO Henry Wong said in an interview on Monday that he sees a need for “mid-tail” online content, for example instructional videos, that’s high quality and unobstructed by advertising. He explained of the TotalVid deal, “We were building the company from scratch and this fell in our laps.”

TotalVid and sister site VideoWaza were previously part of Landmark Communications, owner of the Weather Channel and other media outlets. Wong declined to state details of the transaction or elaborate on Zipidee’s funding situation, but he said the company is raising a Series B round now. Zipidee had raised a Series A round of venture funding earlier this year from Individuals’ Venture Fund, Novus Ventures, and Khalda Development. We wish Zipidee were more forthcoming about its numbers and less prone to coining unfortunate terms like “digi-goods.”

The three sites will be run from Zipidee’s headquarters in San Francisco. Another competitor would be Cruxy (our coverage).

In other paid video news: Motionbox Wants $30; VCs Give it $7M

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