Video platform Ooyala has raised a $35 million fifth round of funding from Telstra Applications and Ventures Group. Its platform powers videos on sites such as ESPN, Rolling Stone, and Victoria’s Secret.
Unlike user-generated content powerhouse YouTube, Ooyala hosts promotional and brand-focused videos. The company also works with television providers to put broadcast shows online through digital TV solutions.
Founded by former Googlers, the company is based in Mountain View, Calif., and has raised a disclosed $79 million in funding to date. The full press release follows:
OOYALA RAISES $35 MILLION TO DRIVE STANDARDIZATION OF ITS PLATFORM FOR ONLINE VIDEO STREAMING, MONETIZATION AND DISCOVERY
Telstra, Australia’s largest telecommunications company, leads Series E round; Ooyala to use funds to scale international operations; meet increased demand from multi-service operators and TV programmers
MOUNTAIN VIEW, Calif. (June 18, 2012) – Ooyala today announced it has raised $35 million in new capital to aggressively standardize video experiences provided by multi-service operators (MSO’s) and TV programmers worldwide on the Ooyala video streaming, monetization and discovery platform. Telstra Applications and Ventures Group, a subsidiary of Australia’s largest telecommunications and information services company Telstra, led the Series E round, with prior investors Sierra Ventures, Rembrandt Venture Partners and CID Group participating in addition to other strategic investors.
In addition to leading the investment round, Telstra and Ooyala are working on a commercial agreement that, once finalized, will mean Telstra will also become a major Ooyala customer and reseller, deploying Ooyala software, analytics and service offerings throughout Australia, where they will work with content owners to transition from traditional video delivery to IP-based distribution.
Telstra will join Ooyala’s network of major reseller partners that include Telefonica and Yahoo! Japan. Telstra is Australia’s leading telecommunications and information services company with presence in 15 countries including China. It operates Australia’s largest fully integrated IP network and its largest and fastest wireless broadband network, and is one of the country’s 20 largest companies by market capitalization. Its cable and media assets include multi-device IPTV offerings, Big Pond Broadband, Big Pond Movies, a 50% ownership in Foxtel and other assets.
Telstra’s current multi-device IPTV offerings will be enhanced through the integration of Ooyala’s online video technology and analytics. Combining Telstra and Ooyala provides the opportunity to take advantage of the strengths of both organizations to better service the Australian market. Telstra will work closely with Ooyala to allow for the smooth transition of services and allow customers to reap the benefits of the new model.
Ooyala will use the new capital to fuel its market momentum with MSO’s and TV programmers. The company will add scale particularly to its operations outside of the U.S., building on its existing footprint in Europe, Asia Australia and Latin America. Over half of Ooyala’s business is outside the U.S. where large international customer wins have helped make it the fastest-growing company in online video, quadrupling revenues since its last funding round in September 2010.
“Online video is becoming synonymous with TV. Service Operators everywhere are redefining their offerings for digital, multi-screen consumption, and Ooyala is the innovation leader helping them transition their business models to not only maintain but improve the economics of traditional television,” said Jay Fulcher, chief executive officer of Ooyala.
Gary Traver, director of Telstra Media, said, “The industry is now standardizing around technology stacks that enable the future of IP-based distribution. With Ooyala’s robustness and focus on personalization and profitability, it is becoming the platform on which the next generation of large-scale deployments are built.”