Second-round funding of US$8m has been garnered by Revision3, the online television network created by Jay Adelson and Kevin Rose, the founders of social news site Digg.com.
The US$8m funding boost is mostly from Greylock, a Web 2.0-oriented investment firm that previously put money into Digg as well as online advertisers DoubleClick and social networking sites LinkedIn and Facebook.
Revision3 claims to be the only online TV channel dedicated to creating regular internet-exclusive content and claims to get two million downloads per month.
The internet channel primarily offers niche programming, focusing heavily on technology, movies and gaming.
Already two of Revision3’s shows are profitable due to sponsorship, including Diggnation, a weekly video podcast starring Digg founder Rose, sponsored by domain name hosting service Godaddy.com.
Contrary to most IPTV content, Adelson, CEO of Revision3, has a policy of no pre-roll advertising on the channels programming content and believes that most advertisers would not choose to place ads after the show for lack of viewership.
Instead the programmes have integrated advertising. Diggnation tries out beer from a different brewer each week, drinking the beer that sponsors the episode while reviewing or advertising, it.
This revenue model seems to work as Revision3 has also received funding from some angel investors, as well as Greylock, which the company plans to pour into advertising sales reps among other areas.
By Marie Boran