MTG backing for Zoomin.TV MCN
July 20, 2015
In a further sign of the importance of multi-channel networks to established entertainment groups, MTG has acquired 51 per cent of Zoomin.TV, the online video entertainment network, content production and advertising sales house. This follows MTG’s announced investments in ESL (the world’s largest esports company) and Splay (Scandinavia’s number one MCN and digital content creator) in the last few weeks, and reflects MTG’s strategy to invest in relevant, complementary and scalable digital brands, content and communities. MTG’s fast growing digital portfolio also includes the Viaplay Nordic subscription video on demand service, esports platform Viagame, and advertising video on demand TV sites in eight European countries
Zoomin is the fifth largest MCN in the world, attracting more than 2 billion monthly video views and 100 million subscribers worldwide on YouTube. Zoomin also has a network of 2,000 publishers, including leading media brands such as Yahoo, AOL, Bild and Telegraaf. Zoomin’s daily production includes more than 400 premium short video clips in 18 languages and 27 categories from video journalists all around the world. Zoomin’s in-house sales team sells advertising solutions on Zoomin and third party channels in 45 territories to leading consumer brands including P&G, Philips, Volkswagen and Unilever. Zoomin has generated 36 per cent average sales growth over the past five years, and 70 per cent growth in 2014 alone.
MTG is acquiring the shares based on an Enterprise Value of €88 million. Zoomin’s two founders – Jan Riemens and Bram Bloemberg – will continue to drive the company’s development. Zoomin was founded in 2002 in Amsterdam and also has offices in London, Brussels, Paris, Dusseldorf, Hamburg, Madrid, Barcelona, Milan, Miami, Los Angeles, Mexico City, São Paulo, Montevideo and Kerala.
MTG says the opportunities opened up by its recent digital investments are tremendous. Gaming video content alone already attracts 468 million online viewers, and is a $3.8 billion revenue opportunity according to a recent report by Superdata. Online gaming is one of Zoomin’s key verticals, and Zoomin will work closely with ESL and Viagame to drive higher viewership and monetisation rates. At the same time, Splay will leverage Zoomin’s global distribution network to promote its web talents, while in turn providing best-in-class influencer marketing tools to Zoomin and its publisher network. The now global digital footprint and advertising sales capability of this combined group will benefit all of MTG’s video entertainment products.
“This combination of global web talent and content, massive reach amongst millennials, and proven monetisation capabilities confirms our position as a leading player in the global online video entertainment space.” said Jørgen Madsen Lindemann, MTG President and CEO. “It is now clear that we are creating an online video eco-system that is fully prepared to capitalise on the next steps in the evolution of social video. It will enable both Zoomin and our other market leading digital brands to expand even faster by leveraging our combined consumer insight, reach and cross-promotional potential. We will now operate right across the digital video entertainment spectrum, just as we have done so successfully with our TV content production studios, channel brands and distribution platforms. So…welcome to the Zoomin team, and we look forward to realising some big ambitions together.”
Zoomin.TV founders Riemens and Bloemberg said they were extremely happy to have found the right strategic partner in MTG. “We wanted to team up with a company that knows the content arena inside out and that will elevate Zoomin to become an even bigger global player in the online video space. MTG’s near 900,000 hours of acquired and annually broadcast content, together with its leading in-house production studios, demonstrate this knowledge and platform. We have a proven business model for creating and monetising online video reach. Now we will accelerate our growth further by working with MTG to position ourselves as the ideal partner for video publishers looking to succeed internationally. On behalf of all our talents, partners and employees, we look forward to working with MTG.”