09/07/11 23:05:21 KRwd/42E0
Is Veoh the Next Big Video Site to Give Up?
URLﾘﾝｸ(mediamemo.allthingsd.com)
>Multiple sources tell me the company is aggressively
>marketing itself in hopes of finding a buyer.
.
>What happened to Veoh? The same thing that happened
>to almost every other Web video portal that
>isn’t Google’s (GOOG) YouTube or Hulu: Not enough
> audience, not enough ad revenue, too many costs.
>Veoh claims an audience of about 25 million users,
>which is less than auditors like comScore (SCOR)
>report, and is, in any case, an order of magnitude
>smaller than YouTube’s. Sources tell me the company
>lost money on revenue of about $6 million last year
>. Sales are up and executives are optimistic
>it could break even this year, but the trajectory
>isn’t high enough to keep Veoh afloat as an
>independent company.
>So who would buy Veoh? Theoretically, at the
>right price, the company could be attractive to
> a large Web player like a Yahoo (YHOO),
>which used to be a big player in video back
> when video was a small market.
>Or the company could try marketing
> its technical expertise to a cable/telco
> company like Time Warner Cable (TWC)
> that hasn’t done much with online video but says it will soon.