Michael Eisner not doubting Veoh despite report
LOS ANGELES--Michael Eisner wasn't miffed enough at Veoh to stop him from investing in the company once again.
Dmitry Shapiro, Veoh founder
Last week, the former Disney chairman took the stage at Digitas' "Newfront," a showcase of Web video for potential advertisers held in New York. Joining him was Veoh's founder Dmitry Shapiro.
According to Silicon Alley Insider, Eisner used the opportunity to chide Shapiro about when Veoh, a company that bills itself as a Web TV network, is going to pay off. Silicon Alley Insider called the exchange between the two men "uncomfortable."
On Tuesday, Shapiro was at the OnHollywood Conference and he said he was dumbfounded after reading the story. He and Eisner were joking around and that everyone in the audience understood that except Silicon Alley Insider. What should have tipped off the blog's reporter, according to Shapiro was when Eisner started picking fun at Veoh for posting an ad for a penis enlargement herb.
Shapiro said Eisner is pleased with Veoh's progress and was part of a $30 million funding round the company closed recently that included such other investors as Intel and Adobe Systems. This was Eisner's second investment into the company.
Maybe the important question is whether Eisner should be down on Veoh. In a sector where YouTube has devoured almost everything video on the Web, Veoh says it has 28 million unique visitors worldwide. They spent more than 100 minutes each month on the site. The company is able to keep them there so long because it offers long-form content and a recommendation search engine that helps people find the clips that appeals to them.
Veoh's goal is to attract the best videographers on the Web or the people Shapiro calls "the YouTube graduates."
But when can he start putting cash into Eisner's already deep pockets?
"We'll be profitable in 2009," Shapiro said.
Greg Sandoval covers media and digital entertainment for CNET News. He is a former reporter for The Washington Post and the Los Angeles Times. E-mail Greg, or follow him on Twitter at http://twitter.com/sandoCNET.
With Hulu (which Veoh aggregates with no agreement) leapfrogging past Veoh in the abilty to deliver internet television experience and new players in this market popping up all the time, I too would be worried about seeing any of my money.
Veoh TV pitched to everyone including investors as the future, what they are getting for their money is just another spinoff of YouTube. Since YouTube is working on delivering better video quality and with content providers like CBS, MTV, the WB being distrubuted in many other places, promises from Veoh will eventually be falling on deaf ears. The song and dance of "Trust me this is the future of internet television" grows old quick when there is no return on the investment in sight anytime soon.
If Hulu blocked their access they would lose a majority of their marquis content so that is pretty shaky ground to be on. Maybe somebody should be starting to start a rough draft for a screenplay titled, "Shapiro, a Man and his Dream" to make back some of the money. Sounds like it is starting to become a "Money Pit" to me. You don't need to be Nostradamus to predict the future of Veoh.