Today’s announcement and other financial moves reportedly in the works for the gaming-oriented online service underscore how hard it is for channels to make money at YouTube. Machinima — which describes itself as “the number one global video entertainment network for young males” — says today that the layoffs, hitting 30% of the workforce, are part of its “restructuring in and around its sales organization” as it leans on its “longstanding partnership with YouTube to drive media sales.” But it also comes as it lines up $18M in funding from a group led by Warner Bros, website Re/code reports, citing “people familiar with the transaction.” Last week The Wall Street Journal reported that Warner Bros was mulling the possibility of investing as much as $15M in the online video operation. The numbers are a far cry from the amounts approaching $70M that Machinima was said to be hoping to secure last year. One of the problems for YouTube services like Machinima is that Google takes about 45% of the ad revenue it sells, as well as much of the inventory. Google, Redpoint Ventures, and MK Capital are among the major investors in the company. Today’s layoffs come less than four months after Machinima trimmed 10% of its work force as part of a plan to increased its commitment to programming and distribution and its YouTube network.
Machinima Lays Off 42 Employees As It Turns To YouTube To Sell Ads
What's Hot on Deadline
Latest Business News
- Charter-Time Warner Cable Deal Would Reduce Competition Opponents Tell FCC
- ‘Walking Dead’ Lawsuit: Frank Darabont & CAA Bite AMC Back Over Contract Claims
- ‘Hamilton’ Juggernaut Returned 25% Of Its $12.5M Costs In Five Weeks
- AMC Networks Shares Hit By ‘Walking Dead’ Ratings Drop, But Is It Overkill?
- Participant Media Taps David Linde To Be CEO
- Broadway Back Big Time With 22% Box Office Bounce; ‘Lion King’ $2M