×
You will be redirected back to your article in seconds

Joyus Raises $24 Million From Disney’s Steamboat, Others to Expand Video-Shopping Network

Funding led by Marker and Disney's Steamboat Ventures

Joyus, whose video network is designed to sell products to women shoppers, has raised $24 million in a new financing round led by Steamboat Ventures — Disney’s venture-capital affiliate — and VC firm Marker.

The company, based in San Jose, Calif., will use the capital to invest in product, engineering and expanding distribution for its video network, as well as open a studio in L.A. in the next few months, said Joyus founder and CEO Sukhinder Singh Cassidy.

“The next evolution of our company is about creating compelling content and series — differentiated by the fact that it’s shoppable,” she said.

Existing Joyus investors, including Accel Partners, Interwest and Time Warner Investments, also participated in the round, which brings the company to $44 million raised to date.

“Investing in Joyus was a no-brainer for Steamboat,” Steamboat Ventures partner Alex Hartigan said. “As a global media company, Disney and Steamboat are always looking for the next generation of media innovation, and Joyus has created it with a powerful new programming and business model for online video.”

What’s different about Joyus from other digital-video companies: Its business model is based on product sales, not advertising or subscription revenue. In 2014, according to the company, its videos drove about $1 in direct commerce revenue per view. That’s as much as 20 times higher than current preroll video cost per thousand views (CPMs), Singh Cassidy said.

“Our goal is to create content that actually drives shopping behavior,” said Singh Cassidy, former head of Google’s Asia-Pacific and Latin America operations.

Joyus works with more than 500 brands to create videos that include links to buy their products; most of those are smaller companies that have $5 million to $50 million in annual sales, Singh Cassidy said. Clients include L’Oreal, SuperGa, Joe’s Jeans, Verso Skincare, Jouer and Urban Remedy across the Joyus network in beauty, fashion, health and lifestyle categories.

The company splits about 50% of sales revenue with brand partners, and also shares a cut with distribution partners. The privately held company, which has about 50 employees, does not disclose finances or number of unique users for its service.

About 75% of Joyus’ video views come from other sites, with partners including AOL, People.com, Real Simple, Hollywood Life (owned by PMC Media, publisher of Variety), CenturyLink, Verizon and others.

Along with the funding, Joyus announced several recent executive hires. Those include: David Lazar, president and chief customer officer, former CEO of Chaiken Clothing; chief content officer Kathy Samuels, previously with ABC, NBCUniversal, Paramount/CBS and Hasbro Studios; Jennifer Sharp, VP of partnerships, who formerly worked at MGM Studios, Amazon and Walmart.com; Sandra Szahun, head of sales and branded content, former VP of integrated marketing for ABC Television’s daytime and syndication group; and Jonathan Hoeh, VP of operations, who hails from Gap’s Old Navy brand.

“It is not easy to monetize online video, but Joyus makes it look easy,” Marker partner Rick Scanlon said. “The team at Joyus is built to take this model even further, and we are very excited about what the future holds for this company and anyone involved.”

More Digital

  • The Irishman

    'The Irishman' Nabs 17.1 Million U.S. Viewers on Netflix in First Five Days, per Nielsen

    Martin Scorsese’s mafia saga “The Irishman” was watched by 17.1 million unique Netflix viewers in the U.S. in the first five days of its streaming release, according to Nielsen estimates. By comparison, Sandra Bullock-starrer “Bird Box” scored nearly 26 million U.S. viewers in its first seven days of availability (Dec. 21-27, 2018) on Netflix, according [...]

  • Amazon, HBO Max, Netflix Dish on

    Amazon, HBO Max, Netflix Dish on Their International Plans

    It’s different strokes for different streaming folks as Amazon, HBO Max and Netflix lifted the lid on their international plans in London this week. Amazon said it’s not in the volume game and talked up a select number of hyper-local shows, while Netflix dished on plans to rev up non-English-language originals. The message from HBO [...]

  • NOBODY’S LOOKING

    Daniel Rezende on Netflix Brazilian Series ‘Nobody’s Looking’

    Having premiered on Netflix Nov. 22, “Nobody’s Looking” marks the first collaboration between Gullane and Netflix – their second, “Boca a Boca” is in development- and comes from a long list of new projects that the streaming giant has announced with it’s $87 Million investment in Brazilian content. The series embodies the streaming platform’s push [...]

  • Sunil Doshi

    ATF: Sunil Doshi Launches Content Development Platform All Things Small (EXCLUSIVE)

    Sunil Doshi, whose company Alliance Media & Entertainment produced 2017 Tokyo film festival title “Bioscopewala” and distributed Jafar Panahi’s 2018 film “3 Faces” in India, has launched a new content development platform at the ongoing Asian TV Forum & Market in Singapore. The Mumbai-based All Things Small (ATS) is founded by Doshi, journalists Sidin Vadukut, [...]

  • YouTube-Rewind-2019

    YouTube Rewind 2019 Scraps Old Format After Last Year's Torrent of Dislikes

    YouTube has taken a brand-new approach with this year’s YouTube Rewind mashup video — dropping its tradition of highly produced original videos segments. Instead, the 2019 version is a montage of what the platform says were the biggest moments and milestones from around the world on YouTube. The move came after the 2018 YouTube Rewind [...]

  • PewDiePie

    PewDiePie Is the Most-Watched YouTube Creator of 2019 With 4 Billion Views

    PewDiePie’s Bro Army remains stronger than ever: The top YouTuber is the most-viewed creator of 2019 on the platform year-to-date, with more than 4 billion views this year, according to YouTube. The comedian, game vlogger and meme aficionado, whose real name is Felix Kjellberg, is also the most-subscribed individual YouTube creator, currently with 102 million [...]

  • Variety Summit Examines Streaming Options and

    Variety Summit Examines Streaming Options and Innovation

    Analytics, monetization and the expanding landscape of entertainment will be the focus of Variety’s Innovate Summit: Discovery & Data Science in Media on Dec. 5 in West Hollywood. The event is presented by PwC. The summit will feature 32 speakers, each considered industry leaders in the emerging world of streaming. Each panel will speak to [...]

More From Our Brands

Access exclusive content