LA tech roundup: YouTube makes no profit, UberPOOL launches ride sharing, Machinima gets $24M and more

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YouTube isn’t turning a profit according to sources with knowledge of the matter, reported the Wall Street Journal. If true, it would be a stunning revelation for a site that has over 1 billion users per month and reportedly $4 billion in revenue in 2014. YouTube already takes a 45 percent cut of advertising revenue from its creators — an amount YouTube creators complain is too high already. Many of those YouTube creators are spreading out onto cable television and other video platforms like Vimeo and Vessel. While not a death sentence, YouTube’s inability to turn a profit 10 years and billions of views after founding may spell serious trouble for its business model. [YouTube: 1 Billion Viewers, No Profit: WSJ]

 

 

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The Rubicon Project’s first year on the stock market is going quite well. The company reported that 2014 revenue was $125.3 million, 49 percent over the previous fiscal year. This despite shedding publisher inventory, from 1.3 trillion in 2013 to 999 million in 2014. CEO Frank Addante said they had intentionally dropped lower quality publishers in pursuit of more premium inventory, so as to boost their revenue better over the long-term. Average CPMs for the year rose from 36 cents in 2013 to 67 cents in 2014. [Rubicon project expands quickly, house cleaning pays off In Q4: AdExchanger]

 

 

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Machinima raised a $24 million Series E investment round of capital, laid off 13 employees and shutdown some of its YouTube channels this week. The burst of activity is part of the video gaming focused media company’s ongoing efforts to restructure. In recent years, the company has undergone several rounds of layoffs, hired a new CEO and widened partnerships. It recently struck new distribution deals with Vimeo, Samsung and Vessel. Warner Brothers led the $24 million round and was an investor in Machinima’s Series D round. Turn around efforts appear to be paying off as Machinima cites a 70 percent increase in monthly viewership and a tripling of U.S.-based unique viewers.  [Built In LA]

 

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Uber launched UberPOOL in Los Angeles, a carpooling feature that allows Uber customers to share rides. “The vast majority of uberX trips in Los Angeles have a similar trip—a trip that starts near or ends near the same place and is happening around the same time. Most of these trips transport 1-2 people, leaving 2-3 empty seats,” wrote an Uber representative in a blog. The company claims by ride sharing customers can save up to 50 percent while only adding a few minutes per trip. The company also claims drivers will be able to earn more money on longer trips without downtime between rides. [UberPOOL in Los Angeles: OurVision for the Future: Uber Blog]

 

 

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Twenty20 raised an $8 million Series A round led by Canaan Partners and is shutting down its print business. Previously, known as Instacanvas, Twenty20 was turning Instagram photos into prints, overlaying them on coffee mugs, mobile phone cases and other physical objects. Now the company plans to take its library of 45 million photos from 250,000 photographers and license them. CEO Matt Munson claims the service is the largest crowdsourced photo-licensing source available. The company’s mobile app allows everyday amateur phone-photographers to make their photos available for licensing. [Twenty20 raises $8M, launches Ccowdsourced photo-licensing service: TechCrunch]