Sky invests another 5MN in OTT start-up 1Mainstream
DetailsMichelle Clancy | 17 March 2015
Sky has invested a further $5 million in 1Mainstream, an over-the-top (OTT) start-up company that operates an automated platform for the distribution of linear and on-demand video.
The investment, which is in the form of a convertible debt security, builds on the $2 million already invested by Sky in August 2013.
1Mainstream's platform provides automation technology to enable content companies to launch OTT services across multiple platforms – such as Apple TV, Xbox, Android TV and Samsung.
Since its initial investment, Sky has used the 1Mainstream's platform to broaden distribution of its OTT services such as Sky News and NOW TV to its growing digital audience.
"We are delighted to be demonstrating our commitment and belief in 1Mainstream by making this additional investment," said Emma Lloyd, Sky's director of corporate business development and start-up investments. "Our partnership is a great example of the way in which we find innovative and forward-looking start-ups that support our key business goals. We've already seen the real value by extending the distribution of our content onto new platforms and into new geographies. The 1Mainstream team have some exciting new product ideas in the pipeline and we look forward to exploiting those in the future."
As part of this transaction, 1Mainstream plans to create a new subsidiary, with Sky as a shareholder, focusing on new product concepts.
The expansion of the partnership with 1 Mainstream follows Sky's recent investments in the cross-platform network Whistle Sports; online video aggregator Pluto.TV; and US ad tech firm Sharethrough.
Rajeev Raman, CEO and co-founder of 1Mainstream, added: "It's hard to overstate Sky's role in our development and growth. Their spirit of innovation and ability to partner with a young organisation is a rare and potent combination that we are very excited to be a part of. The opportunity to jointly define and build the next generation of digital OTT services is phenomenal. We are very much looking forward to expanding our partnership."