Blip.tv raises funding for video exploits
The video site is investing in its growth. But with uncertain economic times and a less-than-ideal business model, its profitability is still in question.
Blip.tv, a video site that shares advertising revenue with show producers on all the clips it hosts, announced on Tuesday that it has raised an undisclosed amount of funding in a round that was led by Bain Capital Ventures. The company also announced that it has grown 250 percent in the past year, serving more than 51 million video views last month alone.
"Our goal is to make online shows sustainable by providing services of scale to independent creators and Web studios," said Blip.tv CEO and co-founder Mike Hudack. "Web show creators should be able to focus on creating great content while we take care of infrastructure, distribution, and advertising on their behalf. With Bain Capital's support, we know that we'll be able to grow our offerings for producers while providing value for distribution partners in the form of excellent episodic programming."
Blip.tv is competing in a tough market. The company is fighting for attention and users with services like YouTube, Viddler, and Vimeo. And although each company has enjoyed success, none of them have been able to find an easy way to become profitable. Just last week, Vimeo launched a new service called Vimeo Plus, a paid solution with additional features for $59.95 per year. YouTube is trying professional content and advertising to increase its revenue.
For its part, Blip.tv has decided to raise more money and maintain its 50-50 revenue split with users. And although each has merit, there's no indication that any single solution will make these companies profitable as their popularity rises and costs skyrocket.