Major European broadcaster RTL is to invest US$ 36mn in Canadian online video specialist BroadbandTV, the fifth-largest entertainment network on YouTube with more than 800mn monthly views and over 7,000 content partners.
The investment sees RTL take a 51% stake in BroadbandTV, and is part of a planned series of investments in the company as it expands its platform and prepares to open offices in New York and Los Angeles.
BroadbandTV was founded in Vancouver in 2005, offering a solution which enabled large media organisations to detect videos which are uploaded by fans on YouTube, then offer those organisations that own the IP a tool for monetising the content.
The company has since expanded its portfolio to include tools for the management, optimisation, protection and monetisation of video content, and its target audience includes media companies, content creators and advertisers.
Guillaume de Posch, co-CEO of RTL Group, said: “As the leading European entertainment network, RTL Group is committed to becoming a major player in all segments of the rapidly growing online video market, and is ideally positioned to do so.
“Broandband TV is one of the most innovative companies in the YouTube ecosystem. RTL Group’s track record of allowing our businesses to be run autonomously by entrepreneurs means that BroadbandTV can maintain its culture and flexibility, while benefitting from our strong investment and partnership to drive continued growth.”