Channel M raises $6M to provide TV content to retailers
Channel M, which provides content and advertising to around 20,000 retail locations in the United States, has raised $6 million to expand its network and increase ad sales.
The Los Angeles-based company has deals with retailers such as GameStop and Macy’s to provide the material shown on in-store TVs. Channel M acquires movie trailers, music videos and other content, while also producing some footage itself, said CEO David Teichner. In fact, the company has a film crew at the Sundance Film Festival right now.
Channel M isn’t the only player in what’s called the “out-of-home” advertising market – for example, VentureBeat reported that RippleTV raised $10 million in July 2007 – but according to Teichner, Channel M is the largest. In comparison to Channel M’s 20,000 locations and specifically tailored content, Teichner said his nearest competitors distribute already-existing material to less than 10,000 locations.
“They usually just re-purpose CNN or NBC or the Weather Channel,” he said.
With this third round of funding, which was led by Ascend Venture Group, Channel M’s total financing comes to just under $15 million. Teichner said the company plans to use the money to expand its 55-person staff by another 25 or 40. Channel M also wants to convert much of its distribution from DVDs to a digital feed, which means content will be updated more frequently.
Channel M was founded in 1989, but only started seeking outside investment four years ago. Teichner joined in 1997, when the company’s distribution was limited to 100 video arcades.
There’s growing interest in out-of-home content from both retailers and advertisers, Teichner said. He predicted the most dramatic growth will come in advertising.
“Right now, our revenue is really split (between stores and advertising), but the big growth is in the media dollars,” he said. “That’s where we see the growth and scalability.”
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About the Author, Anthony Ha
Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.