Voddler Picks Up Another $8 Million In Funding For VOD, Led By Nokia

Nokia (NYSE: NOK) may be rethinking how it delivers mobile music — shuttering its Ovi Unlimited music service — but it is not giving up on digital entertainment altogether. The Swedish VOD and streaming site Voddler has announced that it has picked up an additional $8 million in funding, with this round led by Nokia’s VC arm, Nokia Growth Partners.

The investment from a mobile giant could be a signal that Voddler, which works on a P2P architecture, could be looking to extend its service to mobile platforms: up to now it’s mainly been about PCs.

“It just gets more and more common to see the movie on computers and mobile devices,” says Marcus B├Ącklund, Voddler’s CEO, in a blog post on the investment. “I know we have much to learn from Nokia’s extensive experience in mobile solutions.”

Voddler says that in 2010 it showed five million films, from a catalogue of 3,500 titles from a number of premium names such as Disney (NYSE: DIS), Paramount and MGM, to more than 850,000 consumers in Sweden, Finland, Norway and Denmark. But in the last year, company has somewhat shifted its business model. Whereas a year ago some 95 percent of its content was free and ad-funded, today that proportion has gone down to 80 percent.

We have reached out to Voddler to ask whether the company plans to extend its service beyond Scandinavia and will update this post when and if we hear back.

Prior to this newest round of funding, Voddler had raised rounds worth $3.5 million, $5.46 million and $2.2 million.

Voddler says the transaction will close this quarter.