vmix-logo.pngVMIX, a company that once sought to be YouTube, but which changed direction to provide software to large web properties to share video, has raised $16.5 million in funding.

VMIX joins a host of companies doing much the same thing, including Brightcove, Reality Digital, Vsocial and VideoEgg, to name a few. These all serve third-party sites with video technology.

The San Diego VMIX offers a video player and a content management system that includes social networking features. Visitors to a company site using VMIX can do things like upload their own videos, share videos with other users and vote top videos. The site owner can customize the VMIX player to match the site’s overall design, control the sorts of videos appearing on the site, and upload their own videos.

It isn’t as sexy as viral user-generated video sharing sites like YouTube. VMIX had original planned to be such a site (the destination site is still at VMIX.com). But providing quality software to media organizations has turned out to be a bigger business for VMIX: Client companies don’t want to put the time and money into building their own online video software.

VMIX says it has 190 web sites using its software, including movie studios like Universal, Paramount, Lyon’s Gate, Fox Searchlight (see screenshot, below) MGM as well as newspapers like the Chicago Tribune. Through its partners, VMIX reaches over 60 million unique monthly visitors.

VMIX has done little marketing, it says, relying instead on customers recommending the software to others. New investors include JK&B Capital and ATA Ventures. They join existing investors Mission Ventures and Enterprise Partners.