Tubular raises $2.5 million to serve burgeoning YouTube industry

Wed Dec 19, 2012 9:09am EST
 
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By Gerry Shih

SAN FRANCISCO (Reuters) - Tubular, a small San Francisco start-up that provides analytics for YouTube content creators, has raised $2.5 million in venture capital in the latest sign of how far the business ecosystem has evolved around the Google-owned video repository.

YouTube was once known as Wild West of online video, but over the past two years Google has focused on raising the quality of YouTube content through a series of direct investments and the cultivation of third-party "networks".

The result is a cluster of small studios, mostly based in Los Angeles, that acts like a digital Hollywood, pumping out slick YouTube hits.

With the ultimate goal of hosting enough high-quality content to lure big-spending advertisers to YouTube, Google doled out more than $100 million last year in grants to its networks and bedroom stars.

In May Google led a group of investors who poured $35 million into Machinima, a leading network, to stoke growth in the YouTube industry.

That market has now grown to the point that it can support its own start-ups, says Tubular's founder Rob Gabel.

COMPETITION

As more semi-professional and professional YouTube creators enter the sector, with increasing competition among them, there is a growing need for analytical services.   Continued...