Web Video Players Alloy Digital and Break Media Get Bigger by Getting Together
People have been predicting a Web video consolidation wave for years. Here’s another sign that it may actually be happening: Break Media, which specializes in clips aimed at young dudes, is merging with Alloy Digital, which specializes in clips aimed at even younger dudes.
The new company will be called Defy Media. Alloy and Break described their deal to the New York Times as a 50-50 joint venture, though Alloy chief executive Matt Diamond will get that title in the new company, and Break’s Keith Richman will be president.
All of those deals have the same basic premise: To compete in an industry dominated by YouTube, you need scale, whether you’re trying to build a business inside of YouTube or outside of YouTube.
Lots of Web video programmers are trying to figure out how to generate money without depending on the world’s biggest website, but both Alloy and Break have been doing that for quite awhile.
Break has built a network of its own sites, anchored by Break.com; Alloy has been taking stars that are big on YouTube, notably the Smosh duo, and building their own sites for them so they can make money without sharing it with YouTube.
Earlier this year, Alloy raised $30 million from ABS Capital. Film studio Lionsgate Entertainment owns a large minority stake in Break.