Online video production and distribution service NextNew Networks has received $15 million in a new second round of funding…the round was co-led by Goldman Sachs and Velocity Interactive Group (Jon Miller is already on the board from before). Previous investors Spark Capital has invested again as has Saban Media Group and Bob Pittman.
NextNew, co-founded by former MTVN (NYSE: VIA) exec Herb Scannell, former Sundance COO Jed Simmonds, former Hanna-Barbera president Fred Seibert, raised a $8 million round in 2006. I have been skeptical of video production studios like NextNew and since the company started, many other competitors have entered the field. It is a hits-driven business in a medium where a definition of hit is still being defined.
Meanwhile, NextNew has also announced a deal with AOL (NYSE: TWX) to provide AOL Video with about 2,000 episodes from some of the short-form videos it has produced since its debut last March. AOL will create a separate video channel for NextNew shows within its portal.