Once in a while, I spot a comment that is either interesting, insightful, intelligent, irreverent… and I post it.

From Tech Crunch’s piece on Veoh Compass

Cut them some slack. IF ANYONE IS OLD ENOUGH TO REMEMBER, VEOH came into being right behind YouTube, along with Vimeo/Revver/Brightcove/now-Crackle/etc. — Yes, VCs threw money at them (bless those days), but, NO ONE IN THIS SPACE has figured out a great business model and they burn through money because they burn through bandwidth. YouTube’s projected to LOSE $470k this year? Without Goog propping them up, they’d be deader than day-old fish.

BRIGHTCOVE abandoned it’s mission and strategy a few times and guess what? They’re alive. Adapt or Die.

The problem with most/all of these ventures is they never learned how to be a “Distributor” in the film industry sense of the word. They are networks without distribution “Rights” (value). They never tapped into the traditional media talent pool to truly converge the Industries. Yes, they could have used their money in a less-geek’d out sort of way and maybe become sustainable businesses.

Hence, we’re stuck with Hulu, which is old media on a new screen and the shining golden child of “newteevee.” Hulu is part of a distribution chain, it’s not a standalone tech network.

VEOH tried (a bit) with their Prom Queen deal, etc., but, there are only so many B. Diller’s in the world and VEOH wasn’t pro-active in more alliances of that nature. And, they didn’t nab ownership in the distribution Rights.

Technology isn’t Content.

$70MM later, there are no tangible/valuable assets. Because they didn’t understand Distribution. That’s kind of sad, because no one has an exit strategy or safety net.

Hopefully, Dmitry’s Twitter quest for a date will end better than his company has.

Read the whole piece here.  See our two cents on Veoh and its peers here.

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