Why Veoh is Having a Big Day

Veoh, the online video startup raised $12.5 million and the collective reaction question across the Web seemed to be What? Veoh's CEO explains his strategy, and then we do a little runthrough of a lot of video services trying to figure out their different market positions.

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Heather Green

April 18, 2006 at 4:00 AM UTC

This article is for subscribers only.

Veoh Networks, the online video startup announced that it raised $12.5 million from funders including Michael Eisner, Spark Capital, Time Warner and existing investor Shelter Capital Partners. And the collective response across the Web seems to be What?

In terms of traffic, Veoh is outstripped by YouTube, so what would make investors pony up? According to Veoh’s founder and CEO, Dmitry Shapiro, it's because Veoh's P2P technology enables independent video makers and Hollywood types alike to dish up longer (movie or TV show length), better quality video online. Where YouTube dominates in the short form, Veoh is looking to be a player in the market for longer videos, Shapiro says. Veoh is free to use, but as producers make money from selling or advertising on their content, Veoh will take a cut of revenues.