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Ooyala And Yahoo Japan Team Up To Capture Online Video Market

Ooyala has struck a deal with Yahoo (NSDQ: YHOO) Japan as both the online video platform and the portal look to add more broadcasters, publishers, advertisers to their respective broadband offerings. One of the problems this collaboration aims to solve involves providing a single standard for online video that will scale across the country and eventually, the region.

In attempting to provide something seamless and simple for advertisers and publishers to get on board with, Ooyala will provide the video platform. In turn, Yahoo will provide the content to connected PCs, smartphones, tablets and televisions in the Japanese market. Yahoo Japan is charged selling the platform to clients, even though Ooyala already has an existing presence in Japan. (It should be noted that Yahoo owns only a 35 percent stake in Yahoo Japan. Also, Yahoo Japan trades Tokyo Stock Exchange)

The deal comes a few months after Ooyala raised a $22 million fourth round. That funding was focused primarily on building up the Mountain View, CA-based video company’s Asian presence and was led by new investors from Japan, CID Group and ITOCHU Technology Investments.

“This gives us immediate access to this large and growing market,” Ooyala CEO Jay Fulcher said in an e-mail. “For Yahoo! Japan, the partnership delivers a proven suite of Ooyala video technologies that they can leverage to grow their business. They can offer advertisers richer information about viewers and can capitalize on new monetization strategies. Finally, the partnership paves the way for Ooyala and Yahoo! Japan to collaborate on future video innovation for that market. There will be more news to come in these areas.”

In the meantime, Ooyala has other partnerships in the works to help it capture the growth in online video in Asia.

“APAC represents a rich market for online video and is a very big focus for Ooyala,” Fulcher said. “In Japan alone it is estimated that over 60 million adults watch video for an average of 12 or more hours a month. Broadband is nearly ubiquitous with 94% of homes connected. Online video consumption is growing in Japan at a rate of 25 percent a year. Throughout APAC, people are watching across multiple types of screens including browsers, mobile devices and connected TVs. The mobile opportunity along in this part of the world is tremendous. You’ll see us continue to strengthen our partnerships with device makers, Internet companies and the advertising industry in not only Japan, but across the broader market.”

Thanks to the recent funding, Ooyala has opened an office in Sydney and still building out a presence in Tokyo. Yahoo Japan represents the largest and most recent of its partners, with others including Austereo, ASP, ABS-CBN, Virgin Mobile (NYSE: VM) and NTT.

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