The venture capital arm of Telstra has led a $35m Series E financing round for online video technology business Ooyala, in a bid to enhance Australia’s largest telecoms company’s multi-device IPTV services.
Telstra Applications and Ventures Group led the round, with existing investors Sierra Ventures, Rembrandt Venture Partners and CID Group participating in addition to other strategic investors.
Headquartered in Mountain View, California, Ooyala specialises in online video management, publishing, analytics and monetisation. Companies using its technology include ESPN, Miramax, Bloomberg, Telegraph Media Group and Yahoo! Japan.
The business, which also has offices in Los Angeles, New York City, London, Sydney and Guadalajara, Mexico, said it will use the new capital to fuel its market momentum with multi-service operators (MSOs) and TV programmers.
The company will add scale particularly to its operations outside of the US, building on its existing footprint in Europe, Asia, Australia and Latin America, it said.
Over half of Ooyala’s business is outside the US where large customer wins have helped make it the fastest-growing company in online video, quadrupling revenues since its last funding round in September 2010.
Telstra and Ooyala are also working on a commercial agreement that will mean Telstra will also become a major Ooyala customer and reseller, deploying Ooyala software, analytics and service offerings across 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 includes Telefonica, Yahoo! Japan, and others.
“The industry is now standardising around technology stacks that enable the future of IP-based distribution,” Gary Traver, director of Telstra Media and now a member of Ooyala’s board of advisors, said in a statement released today.
“With Ooyala’s robustness and focus on personalisation and profitability, it is becoming the platform on which the next generation of large-scale deployments are built.”
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