French video-sharing site Dailymotion, which has long fancied itself as a leading competitor to YouTube outside of the U.S. market, is reportedly seeking more cash even after raising $34 million two years ago. It is still losing money, according to PaidContent and the StratÃ©gies newsletter.
It is also reportedly appointing Ian Brotherston, formerly of BT and AOL, as the company’s new chief executive, a move that may be announced later today. He replaces Mark Zaleski. We’ve sought comment and will update if we hear back. Zaleski, also chairman, will remain non-executive chairman.
This news comes as YouTube widens its lead on DailyMotion, even in France.
Dailymotion’s 2008 revenue is reportedly €12.5 million ($16.2 million), which, while solid, is not enough to endure the sort of bandwidth costs that a popular video site must absorb. In fact, YouTube is reportedly losing anywhere from $513 million to $663 million annually because of bandwidth costs, which translates into between $1.4 million and $1.65 million every day. But the difference is that YouTube is owned by a wealthy parent, Google.
Dailymotion’s costs probably aren’t helped by its early move to embrace high-definition video, which we reported on more than year ago.
22 avril 2009
Paris-based video-sharing hub Dailymotion on Tuesday confirmed reports that its existing CEO Mark Zaleski is being replaced by Red Bee Media commercial director Ian Brotherston.
« Ian’s primary focus will be to lead Dailymotion in its next phase of development, » including the company’s continued U.S. expansion, according to Benoist Grossmann, partner at AGF Private Equity.
In late 2007, Dailymotion raised $34 million from AGF Private Equity (a division of Allianz AG) and Advent Venture Partners LLP to finance its hasty U.S. invasion.
Last week, French newspaper Le Journal du Net reported that Dailymotion was seeking an additional investment to counter a depressed global online advertising market. However, Dailymotion representatives on Tuesday did not return press inquiries on the matter.
Dailymotion’s Board of Directors said Tuesday that Zaleski had resigned from his position as CEO « to pursue other opportunities and spend more time on his other investments. »
« Mark has driven the many phases of our development, including taking the lead in the industry in anti-piracy protection, » said Philippe Collombel, partner at Partech International — one of Dailymotion’s original investors.
As commercial director at Red Bee Media, the privatized Broadcast Technology Division of the BBC, Brotherston was responsible for strategy, international expansion, new media, sales and marketing, and business growth.
Prior to that, Brotherston held senior international leadership roles within AT&T and British Telecom, where he managed businesses in Europe, Asia and the U.S.