Telstra Invests in Ooyala

By Gary Kim June 18, 2012

Streaming video provider, Ooyala has raised $35 million in new capital, with the lead investment coming from Telstra Applications and Ventures Group, a subsidiary of Australia’s largest telecommunications and information services company Telstra. Prior investors Sierra Ventures, Rembrandt Venture Partners and CID Group also participated in the funding round.  The investment by Telstra serves several purposes. First, in Australia, Ooyala will allow Telstra to provide video entertainment without necessarily having to operate a traditional “cable TV” service, and make such services available on fixed or mobile networks.

In a sense, that is in line with other efforts by telcos to provide video entertainment without investing in traditional "home grown" video services. Many telcos have resold partner services, such as satellite TV offerings, to create triple play without creating a branded service "from scratch." 

More recently, some telcos have started experimenting with offers based on streaming video, such as Hulu, as part of broadband access packages.

The Ooyala investment gives Telstra more revenue upside in the over the top video apps space, potentially important in the future if and when online video really starts to erode traditional subscription TV revenue.

Telstra and Ooyala apparently have not finalized thecommercial agreement, but it is expected that Telstra will become a major Ooyala customer and reseller, deploying Ooyala software, analytics and service offerings throughout Australia.

But there are other angles. One advantage of over the top applications and services, when offered by service providers, is that such services often can be sold and leveraged on a global basis, and not simply within the traditional cable or telco service boundaries.

That doesn’t mean that Telstra will attempt to do so, but its ownership in Ooyala means it will profit as Ooyala can do so.

So it is that Ooyala will use the new capital to fuel its market momentum with cable TV providers and TV programmers. Ooyala also expects to expand operations outside of the United States, building on its existing footprint in Europe, Asia, Australia and Latin America. Over half of Ooyala’s business is outside the United States.




Edited by Brooke Neuman

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Popularity of Voice Recognition Gadgets Highlights Need for Speech Analytics

By: Kayla Matthews    6/21/2017

Voice-activated personal assistant platforms such as Amazon's Alexa continue to grow in popularity, making lives easier in all sorts of ways. As such …

Read More

Can Machine Learning Defuse the Ticking Time Bomb of Open Recalls?

By: Special Guest    6/20/2017

Did you know that 150 million vehicles have been recalled in the USA since 2014? That's 38 percent of all the cars in America. And, according to Recal…

Read More

Technology and Ties: 5 Reasons Gen X is Taking Over in Business

By: Special Guest    6/20/2017

The generational clash in the workplace between Millennials and Baby Boomers gets all the hype. It reminds me of the debate over who would win - Muham…

Read More

For Amazon-Whole Foods' Future, Look to Zappos, Not Robots

By: Doug Mohney    6/19/2017

Amazon's bid for Whole Foods is obvious and brilliant. There's a lot of crazy talk about how Whole Foods will get turned into people-less stores like …

Read More

Know the Rules and Tools for Stronger Financial Services Cybersecurity

By: Special Guest    6/19/2017

How can cybersecurity solutions help financial services organizations meet requirements and stay compliant? Let's take a closer look at some of the ex…

Read More