Veoh Blocks Some International Access

93 Comments

Video-sharing startup Veoh has blocked visitors from all but 33 countries from accessing its site, a spokesperson confirmed to NewTeeVee today.

Veoh’s Gaude Paez told NewTeeVee, “The markets we are exiting collectively represent less than 10 percent of our viewer base.” She maintained that the decision was “not about saving resources but rather re-focusing those resources.” Paez was not able to immediately provide the list of countries where Veoh is still available.

Competition is high in the video space and we want to make sure we’re differentiating ourselves in terms of products and ad platforms to monetize. As a startup we just have to make choices.

Paez said the company would soon be enhancing its ad targeting and working to expand access beyond the PC.

Users flooded the Veoh forums with complaints over the weekend, saying they felt discriminated against for being from certain countries: “I’m from Dominican Republic, and when I saw that message I really wanted to cry…. I still want to,” wrote one user, and “this is very unfair not even an email alert i just couldn’t enter, its sucks!!!” said another.

According to Wikipedia, users report being blocked from Lebanon, the United Arab Emirates, Malaysia, Indonesia, Chile, Argentina, St. Kitts and Nevis, Guatemala, Luxembourg, Costa Rica, the Dominican Republic, Venezuela, Brazil, Puerto Rico, Guam, Jamaica, Barbados, El Salvador, Hungary, Malta, Macedonia, Slovenia, Slovakia, Ukraine, Colombia, Cyprus, Romania, the Cayman Islands, Guadeloupe, Saudi Arabia, Peru, Panama, Czech Republic, Turkey, Croatia, Lithuania, Jordan, Egypt, Bulgaria, Serbia, Iceland, Bermuda, Thailand, Brunei, Honduras, the Bahamas, Nicaragua, Anguilla and Guyana.

Paez said Veoh is “absolutely not” running out of cash, but she did confirm the company is looking for funding. “We’re in the midst of talking to additional entities, partnerships and looking at strategic things as well,” she said. Veoh has raised more than $40 million from Goldman Sachs, Tom Freston, Jonathan Dolgen, Shelter Capital Partners, Spark Capital, Michael Eisner’s Tornante Company, and Time Warner Investments. Update 6/3: Veoh raised $30 million more from Intel, Adobe and others.

We wonder if Veoh’s move portends a long-expected shakeup in the online video industry — after all, these services aren’t paying for themselves yet. Lack of overseas revenue is hardly their only problem. Earlier this year, when DivX shut down Stage6, its high-quality video-sharing option, it cited operating expenses. Ironically enough, Stage6 (now just a landing page) prominently recommends Veoh as an alternative for its users (“Stage6 is introducing Veoh Networks Inc. as a site that promises to offer our users a smooth transition. Millions of people use Veoh each month and we feel it is a great fit for our users.”).

Hat tip to Andrew Baron at Dembot.

93 Comments

LifeStar

“Unfortunately Veoh will be ending service in your country due to a low concentration of users. Veoh is maintaining markets when we have the highest concentration of viewers.”

i from MY use proxy la =.= i wan look how many veoh can block IP ^_^ GOODLUCK I CAN i can open have nices sever IP so happy ^^

use proxy for noob (go http://www.youtube.com type proxy can help u how to use proxy ) or hacker for pro ( i can use but wasted time ) ( not good for veoh ) but i like veoh just use proxy ( veoh cant block many IP but if him make id + pws hard to hacker) veoh only find money $$$$$$$ money $$$$ money $$$$$ no money no anime =.= i love money next time sure veoh ….. pay money to log in veoh web sure

Steve Elbows

Isnt this especially ironic considering Veoh’s main original vision was about how peer2peer was the way forward for net video, and how that would solve problems like bandwidth & server costs.

Unfortunately I fear people better get used to having the rug pulled from under them, as the wider economy has a fit and reality bites web 2.0.

Ren

It’s not the end of the world that veoh blocked half of the world. Probably veoh themselves never thought they would’ve gotten this big. So there you go, business without prior proper planning.

Phew, i’m glad i’ve sold my anime streaming site to a Canadian a few days before veoh went on the blocking rampage. :D

robo

eisner and shapiro can go to hell for all i care… i only have one message for them:

great business plan guys!

Nickie

So let me get this straight, Veoh was having low traffic on its site, and it’s solution to increase the traffic and therefore make themselves some money was to BLOCK USERS? I felt hurt when I logged on and saw the message saying my country was blocked. It was so out of the blue, so shocking that I don’t think that I could ever be talked into using Veoh again, this is betrayal in its simplest form. Add St. Vincent and the Grenadines to that ever growing list of banned countries and add me as a user that will never go back.

b.p.s

Perhaps this is just a movement to get more people aware of Veoh, And in time everyone will most likely get Veoh again. Like i said just a publicity stunt. ^^

hacko

Esto apesta tanto material subido y de repente se les canta las bolas y se pasan todo por el culo son unos hijos de puta

Greg

i’m utterly disappointed with the people at veoh. this is what happens when stupid people do business.

George

It may interest you all to know that a new site (which emphasises it is “Anti-VEOH”) has come to the fore in the last few days.
The site is http://www.stage-next.com/
Thier motto “For loyalty that is quality”
Refugees from Veoh are welcomed with open arms.
I’ve found that many “chosen ones” have also moved there.

slkjdkndjnd

veoh is a lil bitch for doin this crap, only certain sites have as many vids an can be accessed from the bahamas

Kev

this was a dodgy move by veoh, im spending the summer in a foreign country so this is gonna suck really bad, i reccomend to all dropped users. http://www.myspace.com, upload videos there, its reliable XD and they support tons of other countries. quality is fair. i own my own site and i used veoh to link some of my important videos because of quality and length :| damn it sucks being a 15 yr old i have no say xD anyways gl veoh, hope your move helps you out. its make or break with you guys now. appearently people complain that they got no notification D: anyways c ya

Arthur

First of all let’s all remember that Veoh does not stand for the US or any of the other 32 countries where it is still accessible.

Now, trying to sum this all up, Veoh decided to withdraw their services from 165 countries (taken from another comment) using “re-focusing” of funds as their main reason.
It is said in the article in the top of this page that “Veoh is ‘absolutely not’ running out of cash” and that they’re only looking for funding, but still they are shutting their services in the already mentioned countries.
So, it’s not as if they are in economical danger in a way they have to cut those people out of their service list, they actually have the money, but just don’t care/like you. That’s what comes straight into my mind, when I read that text part.
So much for getting funds, by decreasing your own reputation in (probably) 50% or more, since even US users called this a scandal.
And maybe they are in the “red numbers”, but are just too proud to admit it. Perhaps just trying to maintain the image, but maybe they really just don’t want to make themselves available for people in those countries, including me (Brazil).

Personally, I see it exactly like this: You and 4 friends are listening to someone, a conversation. Suddenly, the speaker steps forward to you and three other friends of yours and slaps them in the face, including you. Then you are lead to the door, which is shut right in your and your three friend’s face, one still in the room listening to the one speaking.

You and your remaining friends now can’t talk to that friend in that room, but still can meet outside. That’s what’s exactly going to happen. Veoh will only be useful to the ones in those countries, while the “rest” won’t, so people will remove their movies linked to Veoh from their sites, worldwide forum users will have to use another service to show videos and that one will eventually get all the attention.

Prino

I’m from JAMAICA and i was heart stabbed when i saw the message being dispalyed saying the VEOH was no longer available. Now no dissing of other sites like but most of their vid streams are from VEOH so so even if you go to other site they all get their streams from VEOH which can’t be view here as it was blocked. Well i guess people can always do what they want with their product and forget the loyal customers. All i’m saying was they could have given us soem form of notice but in the end VEOH will be missed here…………………now i got to move to the US…………..LOL

Marilena

Everything veoh representatives said about the issue of blocking these countries are just excuses.

Blocking the countries only proves the incapability of the Veoh stuff to built and maintain a competitive video base. First Mac users are being excused because veoh stuff can’t built the mac software and then countries are blocked? Incapability is obvious

If you can’t do something right then just give up and don’t do it all.

George

Living in one of the “privileged” countries (USA), I find VEOH’s action to be unique in the annals of the Internet.
The backlash to this act of treachery to 82% of its community sums up the untrustworthiness of corporate america.
VEOH has made me ashamed in the manner of thier actions and I am hereby withdrawing all my contributions to the aforesaid site and wish to ask the “blocked” world not to judge my country because of the open stupidity of some of my countrymen.

michal

I can understand blocking a few countries but 165!
The manner in which it was done was not only reprehensible, but an insult.
No prior notification. No apologies. No access to them directly to air your views.
This is the first time in the entire history of the internet that such a company has resorted to such dirty tricks.
I have accessed my erstwhile site and removed all of my videos, and many are doing the same.
We gave them our trust, and they have clearly demonstrated they are not worthy of any.
Many in the remaining “elite” 31 countries are now moving to other sites in disgust, which includes my UK and USA accounts.
VEOH, you are not worth rescueing.

khamul

My home, Hungary has also been blocked. Stage6 is gone, now Veoh… At least Stage6 gave us a warning a week before they actually shut down, but what Veoh did, I found it quite abrupt. Anyways, if they don’t need us, their call, still I think imposing fees or requiring donations might have been more a bit profitable than cutting off 80% of the world. Then again, I’m not their marketing manager, I’m sure they know better. I still hope they’ll reconsider this bold decision ’cause I really loved the premium quality service the site offered. Best regards, khamul

Phil

I’m a U.S. viewer, but I gave up on veoh after they started 30-second pre-rolls without any kind of cap. If you try to watch three or four videos, you see the same ad over and over and over and over.

David Mullings

As someone who runs an online video site, I can understand why Veoh would want to block some countries, but they went about it the wrong way.

(1) You have to communicate with users and explain things, otherwise you earn their wrath.
(2) Veoh should offer them a fee-based version for countries that are currently hard to generate revenue from – they will either generate revenue to cover the delivery costs or they will reduce the users from that country automatically due to the new barrier.

It is extremely hard to monetize limited amounts of traffic from multiple countries because most ad networks are only interested in specific regions. Also, approaching advertisers in EACH country is too time-consuming.

It makes no financial sense to spend money serving video to users in Jamaica (where I am from) if you generate $0 from that traffic. You either find a way to monetize that traffic and at least break-even, or you eliminate that cost, otherwise you are throwing away money.

Captain Crap

What a bunch of idiots at Veoh, this must be the dumbest thing I’ve ever heard of.

paullmf

apologies Devon, my frustration should have been directed at Brian E

paullmf

Hi Devon, i AM from Malaysia , and thanks for your condescending comment.
And congrats to Veoh, i think you have very successfully differentiated yourselves!

While i accept downsizing as a sometimes necessary business tactic, it is ‘usually’ accompanied by a timeline and assistance for users to move accounts and services elsewhere. I think they’ve moved suddenly and without warning so as to limit most of the complaints and commentary to those from the affected countries – in the hope that they’ll be largely ignored by the twitterati of the infinitely more important group of 33.

I alwys thought Eisner was a jerk anyway

David Rodriguez

It’s all about the ad revenue. Apparently it’s easier to block countries and tell advertisers that you’re specific to x region than it is to combine advertisers in specific regions and videos that are being viewed by a user in x country.

I’m sure you can hike up CPMs now that the ads are “Geo” targeted.

Brian E

IMO, this seems like a smart business move – why spend money serving every single country on earth when you can’t generate revenue from them? A giant like YouTube has Google’s coffers to help keep service in Malaysia and Cyprus up and running, but it doesn’t make sense for smaller, privately funded companies to sacrifice good business just so they can keep everyone happy.

Devon

This seems to be a trend lately. One I don’t understand at all. Why deliberately block out part of your audience or potential audience? I just wrote a blog entry at my site this weekend about how the BBC is blocking US citizens from their shows and even commercials.

Comments are closed.