Wednesday, March 12

Online Video Service NextNew Receives $15 Million Funding; Goldman, Velocity, Pittman Invest

Online video production and distribution service NextNew Networks has
received $15 million in a new second round of funding...the round was
co-led Goldman Sachs and Velocity Interactive Group (Jon Miller is
already on the board from before). Previous investors Spark Capital
has invested again as has Saban Media Group and Bob Pittman.

NextNew, co-founded by former MTVN (NYSE: VIA - News) exec Herb
Scannell, former Sundance COO Jed Simmonds, former Hanna-Barbera
president Fred Seibert, raised a $8 million round in 2006. I have been
skeptical of video production studios like NextNew and since the
company started, many other competitors have entered the field. It is
a hits-driven business in a medium where a definition of hit is still
being defined.

Meanwhile, NextNew has also announced a deal with AOL (NYSE: TWX -
News) to provide AOL Video with about 2,000 episodes from some of the
short-form videos it has produced since its debut last March. AOL will
create a separate video channel for NextNew shows within its portal.

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