14 DAY TRIAL // Machinima, the company behind the very popular YouTube channel, has confirmed that it's raised some $35 million in a funding round led by Google. Existing investors also pitched in, but Google was the main investor, confirming previous rumors.
The move signals a very big, albeit predictable and long time coming, change for Google, it is now a content creator.
The lines have been blurring for a while now, especially at YouTube, as the site has been funding creators to help them make new videos.
It also bought Next Networks, a company that helped budding video makers but that also produced several web shows by itself.
With the Machinima investment, there's no more beating around the bush, Google is clearly funding content creators, content creators that then get to leverage its sites for exposure and revenue.
"Machinima has built a brand and an audience that rivals some of the biggest channels on TV," David Lawee, VP of Corporate Development at Google, said. "The success and uniqueness of their business makes this a smart investment opportunity."
As expected, Machinima is going to pour the money into things that help it grow. It's already one of the largest channels on YouTube and clearly one of the most profitable, but there's plenty of room for growth left.
"The new financing will be used to invest in Machinima’s content and global sales operations, international expansion, distribution strategies, and product and technology initiatives, as the company strives to create a global video programming brand that transforms the way a new generation discovers and engages with online video and gaming content," Machinima bosted.
As for what's Google getting out of it, well, first it's helping one of the most successful YouTube channels be even more successful. If it is ever going to break even on YouTube, it's going to need more success stories like Machinima.
And second, of course, if Machinima makes money, Google makes money as well, so it's got every reason to stand behind it. But this is just an investment, Machinima will continue to work as it always did. It may not be a long time though until Google truly starts producing its own content.