Video Insanity
Posted by hardin on 10 Aug 2007 | Tagged as: Startups
I have been following the streaming video market fairly closely over the last year, given my previous involvement with Inzum, and my present work as a streaming video consultant. When Inzum officially launched on April 20th, 2007, we had been in contact with NBBC (the National Broadband Company) about securing NBC TV content for our site. Shortly after our launch, we stopped hearing from NBBC, at which point we learned that NBC was joining with NewsCorp (the parent company of Fox, owned by Rupert Murdoch) to form their own streaming video venture, then referred to by the codename MPG. Many people saw it as another attempt at a YouTube killer, although we imagined it to be more of a preemptive Joost killer of sorts. Since then, the venture (rumored to be the brainchild of NBC’s CTO) had fallen off the map and didn’t even have a name or a vague, hinting website like many startups. It became known as Clown Co. after a joke made by some folks at Google, and was mentioned in June on TechCrunch in an article about called Everyone’s Gunning for YouTube. Still, it was not on many people’s radar screens as Joost dominated the streaming video headlines.

This changed yesterday, however. Simultaneous articles on VentureBeat and TechCrunch, titled Providence Invests $100M into NBC-NewsCorp Video Site and Wow - Clown Co. Got That $1B Valuation (Still Nameless Though) respectively. Without a beta, or even a website, Clown Co. has a projected value of one billion dollars! While a venture created by two American TV giants has a lot of potential, it has a long way to go in the public’s eye before it can prove itself to be worth that much. I will be interested to see how the streaming video market grows and solidifies, but with money like this being tossed at it, the expectations are set very high.
