Sky Invests Another $5 Million in Over-The-Top Startup ‘1Mainstream’
Sky is investing another $5 million in 1Mainstream, an Over-The-Top (OTT) services startup based in Cupertino, California (also the home of Apple Inc.). Sky, which is 39% owned by 21st Century Fox, previously invested $2 million in 1Mainstream in 2013.
As broadcasters rush to reach audiences beyond cable, over-the-top channels are being launched at a rapid rate. Sony is nearing the launch of its ‘Playstation Vue’ OTT service, while HBO announced last week its ‘HBO Now’ offering will be available on Apple TV in April. Apple, which recently lowered the price on Apple TV from $99 to $69, has sold roughly 25 million of the streaming devices.
Sky launched OTT versions of ‘Sky News’ and ‘NOW TV’ with help from 1Mainstream and has used its investment to learn about the fast-growing market. Some of Sky’s other startup investments include the live online video service ‘Pluto.TV’ and sports-focused multi-channel network ‘The Whistle.’
Beyond Sky, 1Mainstream’s OTT tech platform has helped content creators, such as Fusion, AwesomenessTV and Condé Nast, launch channels on devices like Xbox, Apple TV, Google’s Chromecast, Roku and Amazon’s Fire TV. Recently, it launched CBS’s digital news network, CBSN.
In an interview, 1Mainstream CEO Rajeev Raman, who served previously as VP of Product at Roku told me “2015 if off to a great start. There is a clear sense that this year we will see many more exciting developments in OTT. We are very excited to participate in this evolution of TV viewing.”
As part of Sky’s new investment, 1Mainstream will create a subsidiary to test product concepts and capabilities that Raman says will “increase engagement and enhance the streaming experience.”
