Online video heats up

By Ross Dawson on April 6, 2006 | Permalink

YouTube, recently the belle of the ball at the Digital Hollywood conference, has just raised $8 million from Sequoia Capital in a Series B round. YouTube is currently the leader of the pack in providing online video hosting, but it still doesn’t have an evident business model. Apparently it will start putting advertising into its site – which it currently doesn’t do – by mid-year, but the costs of hosting video means this revenue stream has to be significant. Far more likely it will look to cut deals with major entertainment companies to be an outlet for video content, in turn tied in with related revenue streams. However YouTube is far from alone in the space, with Jumpcut launched yesterday, and yet to be released service Motionbox declared the best video service by TechCrunch, even before its launch. Both of these services allow video editing, with Jumpcut in particular having some nifty video mashup and remix features, while YouTube is just an upload site. Bubble, bubble, toil, and maybe trouble on the other end of this boomlet, but it has a very good run to go first.

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