Peter Kafka

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Chernin Group Invests in Latino YouTube Channel

mituHere’s another bet on YouTube, placed by people who don’t work at Google: The Chernin Group is leading an early investment round in MiTú, a Latino-focused YouTube network.

Peter Chernin’s holding company isn’t announcing the amount of the round, but I’m told it’s around $3 million.

Other investors include Machinima CEO Allen DeBevoise; Advancit Capital, Shari Redstone’s VC firm; and Code Advisors.

There’s a lot of interest in Hispanic and Spanish-language stuff on YouTube, and the video site has funded several channels targeted at that audience, including one produced by IAC’s Electus and fronted by “Modern Family”’s Sofia Vergara. But MiTú doesn’t have any financial backing from YouTube.

And that seems to be working out just fine. The channel launched 7 months ago, and the company says its English- and Spanish-language clips have generated 800 million views so far. MiTú says it has signed up more than 2.3 million subscribers.

The investment comes alongside other big outside bets on YouTube channels/networks, like the $40 million round Time Warner is leading for Maker Studios. Meanwhile, YouTube is adding more funding to a select group of channels, while cutting off cash to many of the content creators it signed on last fall.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work