Things Heating WAY Up for Content-Based Digital Media Companies

Wow!  What a week for content-based digital media companies -- and I’m not just talking SXSW.

Let’s take a quick look -- on the heavily-watched MCN/online video side of things:

(1) Warner Bros. makes an $18 Million investment and takes a major stake in gamer/young male-focused MCN Machinima;

(2) Disney counters by looking to buy rival MCN Maker Studios for $500+.

Disney hasn’t yet closed the deal with Maker apparently.  But, you know what’s coming next.  Full Screen.  Big Frame.  Anticipate acquisitions later this year by competing studios.  Micro-video networks most certainly are “in” -- expanding the palette of the majors to include broader content offerings (and, importantly, also harvesting new talent to be featured “upstream” in bigger and more traditional content offerings).

How about on the online music side of the house?

(1) Spotify acquires Echo Nest and, subsequently, takes a $200 Million line of credit -- likely to fund even more acquisitions -- and, in the words of Venturebeat, as another sign that it is preparing for an IPO;

(2) Beats Music counters by closing a round of financing of at least $60 Million -- likely for the same reasons.  Meanwhile, the steady drumbeat of new startup online music services continues.

Content-focused digital media/tech-focused companies are white-hot right now.  And, that action is taking place primarily in LA.

Exciting times.

And, I haven’t even discussed the madness this past week at SXSW Interactive!