Leading Next Generation Media Company Alloy Digital Receives $30M Series A Investment from ABS Capital Partners
Top 12-34 Media Company, #1 in Total YouTube Channel Subscribers, Now Poised to Rapidly Accelerate Further Growth
New York, NY – March 7, 2013 – Alloy Digital, LLC (“Alloy Digital” or the “Company”), a leading next generation media company for the 12-34 demographic and a top-10 video network, today announced a $30 million Series A investment from ABS Capital Partners, a leading investor in later-stage growth companies. They join existing investors, including Zelnick Media. Deric Emry, General Partner at ABS Capital, has joined the Company’s board as a result of the transaction.
“Alloy Digital made an extremely attractive investment opportunity,” said Deric Emry, general partner at ABS Capital. “It is at the forefront of the shift in content consumption to digital media. This trend is fundamentally changing the way that entertainment is created, distributed and monetized by delivering interactive entertainment directly to consumers at scale and more economically.”
Mr. Emry added, “Alloy Digital is perfectly positioned as major brands increasingly direct advertising dollars online, following a coveted demographic that has embraced multi-platform, digital media entertainment consumption. While online video viewing is increasing dramatically, there still remains an imbalance between time spent online and dollars spent by blue-chip advertisers, implying a significant opportunity for future growth as multi-platform media formats are expected to grow at a much greater rate than television.”
The financing follows an aggressive acquisition spree by Alloy Digital that, since July 2011, has led its owned-and-operated channels to the top of YouTube in total subscribers with over 12 million.
Alloy Digital CEO Matt Diamond commented, “This funding will allow us to rapidly accelerate future growth by adding complementary, relevant properties and talent appealing to the tastes and shifting consumption behaviors of P12-34 digital consumers. In just one year, we have built a solid foundation through the acquisition of best-in-class properties that have solidified Alloy Digital as the top digital media and advertising network for this demographic and propelled our owned properties to be among the most watched on YouTube.”
The Company will also look to bolster user experience by expanding resources for product development and technology advancements, while also continuing to provide advertisers innovative digital branding opportunities that keep up with P12-34 consumer expectations.
Since July 2011, Alloy Digital has acquired five strong content creators, starting with Smosh, an online leader in teen and young adult comedy content and the #1 most subscribed YouTube channel, in July 2011; Generate, a next generation studio and talent management company, in January 2012; B5 Media, one of the fastest-growing women’s lifestyle digital publishing and media networks, featuring sites such as The Gloss and Crushable, in April 2012; Clevver Media, YouTube’s top entertainment news provider and among the 15 most viewed overall, in June 2012; and The Escapist, a leader in video game culture and the modern day interests and lifestyle of the digital generation, in November 2012.
Two Alloy Digital-owned properties, Smosh and Clevver Media’s flagship property ClevverTV, are among a select group of YouTube channels with over one billion video views, with SMOSH recently surpassing two billion. According to VidstatsX, Alloy Digital’s properties measure a combined 7.5 billion views. The Company also controls five of YouTube’s 100 funded premium channel offerings, including several of its fastest-growing channels: ClevverNews, ClevverTeVe, and SMOSH spinoff, Shut Up! Cartoons. Its most recent channel launch, SMOSH Games, became one of YouTube’s fastest growing channels in history by soaring to one million subscribers in just three months.
Alloy Digital’s leading digital media and video network connects to a total audience of more than 90 million consumers with reach to over 57% of P12-34 internet users, and delivers more than 400 million monthly video streams. The network, which also includes Alloy Digital-owned sites Gurl and Teen, has increased over 50% in the last year and holds its top-ranking position in its category. Additionally, the Company counts more than 30 million followers across its multiple active social media profiles.
Mr. Diamond noted, “We have been able to effectively combine distinct capabilities in the three key areas necessary to reach our target demographic in a fragmented media environment: cost-effective original content development, company-owned channels that generate higher-margin revenues, and distribution across partner media platforms guaranteeing advertisers massive reach to the P12-34 audience. We are energized by the immediate opportunities that will expand our presence even wider.”
About Alloy Digital
Under one roof, Alloy Digital boasts the critical assets for a multi-platform, next generation media company targeting the highly-coveted, early-adopter 12-34 year-old demographic–Generate’s cost-effective development, production and talent management, premium original programming from creators such as Smosh and Clevver, distribution across Alloy Digital’s top-ranked network of media platforms and monetization through sponsorship, ad sales, social media and promotion. Alloy Digital’s proprietary digital media network has ranked top in its category for more than three consecutive years, according to comScore, and attracts more than 90MM consumers each month with reach to over 57% of P12-34 internet users. Alloy Digital holds its position as offering a top-10 video network which delivers several hundred million monthly streams and includes award-winning Smosh, the #1 YouTube channel, as well as Shut Up! Cartoons, one of the fastest-growing YouTube premium channels. The network has attracted over 30MM followers combined across its dedicated social media profiles. Alloy Digital delivers digital campaigns for FORTUNE 500 advertisers and has received multiple industry accolades, including the prestigious ADVERTISING AGE Media Vanguard, an OMMA Award and a DIGIDAY Video Award. Please visit us at www.alloydigital.com.