NEW YORK: The NewsMarket, a web-based video distribution company for the broadcast news and PR industries, has secured $3 million in new capital from the New York State Common Retirement Fund, which is managed by Ascend Venture Group. So far this year, it is the largest pure-play media financing in New York, according to the MoneyTree survey, conducted quarterly by PricewaterhouseCoopers.
The investment comes at a time when online media companies are experiencing a difficult funding climate. "This money shows that the investment community believes our services are key in the development of the industry, said Shoba Purushothaman, NewsMarket CEO. "We are not where we were a couple years ago. It has been a lot more difficult to get funding for technology services."
Using digital compression and broadband technologies, The NewsMarket's services enable journalists to search, preview, and download broadcast-quality PR video content online, directly to their desktops.
Industry experts have said that these types of services are a promising area in the market. "Packaging digital video in a cost-effective way that can actually get play greatly simplifies the process, opined David Copithorne, former global CEO of Porter Novelli. "The NewsMarket has found a way to do that, and it is only a matter of time before others follow."