VideoBlocks Raises $10.5 Million In Funding
Intellectual property fights over online audio and video clips sometimes make it difficult for would be producers of content to be really creative. One company looking to lower the barrier to creativity is VideoBlocks.com; the company which launched 18 months ago is already doing very well having seen over 5 million clips downloaded.
This success of course, has caught the eye of venture capitalists and VideoBlocks is reporting a whopping $10.5 million in fresh capital. The Series A funding round was led by Updata Partners with participation from QED Investors.
The secret to VideoBlocks’ success seems to lie in the way in which it handles the distribution and licensing of its content. Most content licensing companies online tie use and access to every single bit of content hosted, but VideoBlocks gives users full access for a low monthly fee. Presently $79 a month will give a content producer access to very high quality material and this according to many analysts is the biggest appeal to the site.
The monthly subscription model has been so successful that after 18 months in business, VideoBlocks is already profitable. The company has taken on a few big-name clients as well and its present roster includes media giants NBC, FOX, CBS and Discovery.
Audio and video content doesn’t really get any cheaper at $79 a month, so one can expect even more subscribers to join the VideoBlocks bandwagon.