The as yet unnamed joint online video venture from News Corp and NBC, touted as a 'YouTube killer', has received $100m (£49.5m) in funding from Providence Equity Partners.

The VC firm will take a 10% stake in the company, which gives it a valuation of $1bn (£495m) - not bad for a site that's as yet unlaunched and thus unproven.

The new venture, known only by the working title 'New Site', aims to beat YouTube at the online video game by making use of the wealth of content available to the two media companies. It plans to show full episodes of TV shows and films, supported by advertising.

The site will be accepting user generated video content, though it has emphasised that it will prevent copyrighted material from being uploaded, and thus avoid some of YouTube's legal problems.

The new venture's distribution partners include Yahoo!, MSN, AOL and MySpace, which will ensure the site will have considerable reach. Content will be featured in an embedded player on these partner sites.

The cash injection will be used to buy and develop the site's technology. It is expected to launch sometime in the autumn.

Graham Charlton

Published 10 August, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

2565 more posts from this author

You might be interested in

Comments (0)

Save or Cancel

Enjoying this article?

Get more just like this, delivered to your inbox.

Keep up to date with the latest analysis, inspiration and learning from the Econsultancy blog with our free Digital Pulse newsletter. You will receive a hand-picked digest of the latest and greatest articles, as well as snippets of new market data, best practice guides and trends research.