Digital Video Companies to Watch -- BDMI Media Summit 2015

[This article was originally posted in VideoInk.]

Earlier this week, I joined the VideoInk team in NYC for the Bertelsmann Media Summit 2015, a showcase for promising digital media-focused companies organized by German media-backed venture capital firm Bertelsman Digital Media Investments (BDMI).  BDMI has invested in a powerful portfolio of leading digital video companies – most of which were featured here, together with a few other select companies with which they are, in the words of Managing Director Urs Cete, “friendly” (translation -- he hopes to invest).

BDMI is no stranger to success in the digital video game.  Two of its portfolio video companies – StyleHaul and Drama Fever – reaped big headlines and investor returns (and those were only 2 of BDMI’s 10 exits last year).  Impressive.  Given this kind of digital video focus and success, it’s good to know who BDMI believes is worthy of their time and money (note: BDMI’s venture fund invests $500K-$4 million; its seed fund invests $50K-$250K). 

Here’s my round-up of yesterday’s video-focused presenting companies:

JUKIN MEDIA

First up – L.A.-based Jukin’ Media -- which, as I recently wrote, is top of mind of most who closely follow the digital video landscape (including many large strategics). The company is, in a word, “hot” – and for good reason.  Authentic and passionate Founder/CEO Jonathan Skogmo bills Jukin’ as being the world’s #1 viral video media company.  And, who can dispute that with 1.5 billion monthly views off a library of 18,000 UGC-powered videos (each of which Jukin’ acquired and owns outright)?

Jukin’s video library is at the center of its stellar monetization universe: (1) clip licensing (think Getty Images for viral videos); (2) digital syndication (monetizing trending clips for both traditional TV partners like Comedy Central and digital partners like Yahoo!); and (3) original programming (such as its successful FailArmy show that has spawned multiple global renditions and lucrative licensing opportunities). 

Jukin’ also has a more conventional “MCN-ian” side to it – streaming its own brands that drive 250 million monthly views (which, Skogmo explains, gives Jukin’ a way to test video success first on digital and then optimize for upstreamed traditional platforms).  But, while others frequently include Jukin’ in MCN round-ups, Jonathan calls his unique multi-pronged revenue model “MCNX” – as in, an MCN on steroids.  Well played, Jonathan, well played.

MITU

Founder & CEO Roy Burstin took center stage to showcase his Latino-focused digital-first video company, LA-based Mitu, that deserves to be featured on that center stage.  Burstin, like Skogmo, distances himself from the traditional “MCN” label, calling Mitu “a media brand powered by technology and fueled by Latinos.”  He emphasized the “underleveraged” global Latino market for media and bemoaned the lack of culturally relevant content for a demographic he calls “super consumers.”  That is Mitu’s focus and vast opportunity – and the company drives the largest community of Latino video creators in the world (3,600). 

Burstin says Mitu’s “secret salsa” (many chuckled as he said it) is its technology – a depth of intelligence that enables creators to reach the right audience with the right content and across the right distribution platforms.  He explained that Mitu produces content natively -- meaning that a creator’s video “story” may be told in 7 seconds on Vine, 90 seconds on YouTube, and longer on other upstreamed platforms. 

Intriguing.  And, like Jukin’, another one to closely watch.  Mitu is one of BDMI’s “friends” – not yet part of its investment family.  Not yet ….

THIRTY LABS

Video incubator Thirty Labs – co-founded by an all-star cast that includes serial media and tech innovator Fred Seibert (who runs leading animation-focused MCN Frederator) – was a decidedly different animal amongst presenting companies.  But, BDMI is an investor – and membership has its privileges.  Thirty Labs’ mission is to find great nascent video-first companies, grow them (fast!), and nurture them with multiple layers of support – strategy, core tech, and capital (of course).  Efficiencies and acceleration are key value propositions here. 

Co-Founder Yoel Flohr showcased several of its portfolio companies, including Tuubi (a native video network for mobile games), Melt (a mobile video creation and sharing network which enables users to create 10-second silent films inspired by a daily prompt), FastCap (which, as the name implies, is focused on capturing videos in the moment), and Crumbles (a messaging app via which users can instantaneously create auto-generated videos from a clip library – seemingly a la Whipclip -- as well as a user’s own clips).

IRIS.TV

CEO Field Garthwaite presented IRIS.TV -- what he calls the “Pandora for video publishers,” programmatically delivering a continuous stream of “the right content to the right person at the right time.”  IRIS is all about deepening engagement and retention (he cited one major customer for which video views increased 54% and customer retention climbed 70%).  IRIS’s can help to maximize the value of a publisher’s video archive.

EPOXY

In a digital/online video world that is inherently multi-platform and social in nature, CEO Juan Bruce explained, Epoxy gives video creators the tools they need to develop, syndicate, and monetize their videos and effectively engage their audience.  That general vision attracted capital from the likes of Time Warner and Greycroft in addition to BDMI.

VHX

CEO Jamie Wilkinson introduced VHX’s direct distribution platform for film, TV and other content (such as workout videos) that previously lived primarily in a DVD world.  He calls VHK a “Wordpress for OTT” – offering a full turn-key solution for video creators, enabling direct-to-fan distribution and direct sales from their own (generating $6+ million to date for creators).  Comedy Central is one major media partner that recently used VHX to launch its own digital comedy hub.  VHX isn’t stopping there -- it operates its own OTT streaming service.  

VICTORIOUS

Victorious is another LA-based company that is on a mission to give mobile video creators robust tools to build superfan-fueled communities around their content.  CEO Sam Rogoway explained the opportunity to fuel deeper engagement via direct fan-to-fan video creation and real-time interaction.  That fan (hyper)active activity leads to a continuous stream of fresh curated content for a “celebrity” video creator (like client Ryan Higa) or even a traditional brand (like a weekly television show).  With more to see, there is more of you to remember.

The company, which officially launched 2 months ago, has launched 10 creator-focused apps to date – and plans to hit 100 by year-end.  Will be interesting to watch those engagement numbers closely.  

All in all – strong class of digital-first video innovators – and strong event (with many of the “usual suspects” observing in the room).

MCN CEO Profiles -- Your Michelin Guide to Who’s Hot

All in one place -- consolidated for your consumption -- easily digestible.  Here are my recent detailed interviews and individual profiles of leading MCNs and their CEOs (ok, in one case, President & COO).  All of these MCNs (identified in alphabetical order) are important.  And, all of these execs -- each of whom I have come to know -- are passionate about (and authentically into) their individual missions.

I am a believer in each of them ... and you may find their insights to be enlightening ....

DanceOn and CEO Amanda Taylor

StyleHaul and CEO Stephanie Horbaczewski 

Tastemade and CEO Larry Fitzgibbon

Whistle Sports and CEO John West

Here’s my bonus “under the radar” pick -- which is not quite an MCN, but is in the same world --

Jukin’ Media and President Lee Essner

For Hot (Yet Still “Under the Radar”) Video Company Jukin’ Media, Failure Is the ONLY Option

Jukin’ Media.  If you’ve never heard of it, read on.  You should.

I met with this next-gen YouTube economy-based video company the other day at its offices in Culver City, California (the home of leading now Disney-owned Maker Studios and others).  Sat down with President & COO Lee Essner and Mike Skogmo.  Learned a lot.

Jukin’ Media’s mission is to be “THE Home of Viral Video.”  All viral video on all platforms -- initially digital, but certainly its vision can extend upstream to more traditional TV platforms, etc. (in fact, many “clip-based” shows on TV depend upon Jukin’ Media for their content, as well as well-known brands that include MTV, CNN and ESPN and Today).  The company’s roots -- and still its bread and butter -- are in “stunts gone wrong” (in other words, so-called “fail” videos) that go viral due to their inherent humor.  Think of them as “America’s Funniest Home Videos” -- with a heavy dose of “Jackass” -- for YouTube.  And, they tell me that their “special sauce” is their ability to find viral videos before they go viral.  Jukin’ Media to date has over 1 billion total views and 12-13 million uniques per month with a demographic that skews, not surprisingly, heavily young male.  They also have a deep international following, because the concept of “ouch” travels and has no language barrier.

In some ways, Jukin' functions like an MCN.  But, I don’t consider them an MCN (nor do they), because they feature only a small number of channels and feature ONLY content that they exclusively license, produce and own (unlike MCNs that generally primarily feature hundreds to thousands of individual personality-driven UGC content).  And, this fundamental difference enables a very different kind of multi-pronged business model.  Think of Jukin’ Media as having 4 separate areas of focus:

(1) Content Acquisition/Video Library

Jukin’ Media’s essence -- from which all else flows -- is its prowess in content acquisition and its resulting deep library of viral video that can be mined in myriad ways and over and over again.  That means that margins are high.  Content development for Jukin’ is primarily a function of editing rather than video production (with its associated costs).  And, they know what they are doing when they acquire that content.  One example -- they strip out potentially infringing music and substitute their own.

(2) Content Licensing 

As a result of its deep library of content, you can think of Jukin’ Media as being, in part, a Getty Images for viral video.  The company licenses its vast library of content to others (including those mentioned above).  But, the company tells me that, unlike Getty and its stock images and videos, it focuses on a smaller volume of non-stock videos that its licensees can feature more exclusively.  And, that means higher price-tags.

(3) Turnkey Services

The company also outsources its overall video “platform” for the benefit of others who retain Jukin’ to find precisely those viral videos they need (again, including major networks).   Jukin’ automates and optimizes the finding, clearing and acquisition of rights from owners of relevant viral videos.

(4) Original Content Development

Increasingly, the company is in the world of original content development -- albeit “original content” in a different way -- i.e., organizing multiple viral videos under one relevant theme (such as those “fail” videos under the name of its “FailArmy” channel).  The beauty here is that Jukin’s type of content development -- unlike Hollywood or story-focused content development -- can be almost wholly data-driven.  Genetically engineered, if you will.  Jukin’ precisely knows which videos are performing (i.e., going viral), why they perform, and -- therefore -- that those videos will succeed within the umbrella of a larger show.  Just think of the possibilities ...  Out-flixing Netflix?

Jukin’ Media.  What some call the hottest “under the radar” digital video/digital-first media company around today.  I like them.  A lot.

Am a believer ....