YouTube network, Machinima, recently signed a distribution deal with Verizon's new Go90 OTT streaming service. The deal includes 110 hours of original programming per year as well as 40 hours of curated content, according to The Wall Street Journal. The new partnership with Verizon is expected to expand Machinima's current viewership considerably. At the moment Machinima's audience watches 3.8 billion videos per month, which is 10 times larger than any cable network in the U.S., according to Manatt Digital Media.
Recently, Machinima delivered a large amount of original content. Earlier in 2015, the company released a new "Justice League" episode and a mockumentary series called "Real Fake History." Also, it is in talks with Hasbro, a toy manufacturer, to release a Transformers-themed web series, according to Tube Filter.
In the past, Machinima has tried to create innovative and different original content, but most efforts didn't work out and actually cost the company money, according to The Wall Street Journal.
"We did really big things, but the economic model wasn't there," Chad Gutstein, CEO of Machinima, told the Wall Street Journal. "The company lost a lot of money. Now we can make individual programming and make it profitable."
Verizon's Go90 service could put what was missing from Machinima's previous attempts in place. According to Gutstein, the company will produce around 240 hours of content in 2015 and the projections for next year more than double the 2015 figure.
"Our business this year looks substantially similar to the past," he said. "We have an over reliance on advertising and marketing."
"Go90 offers a blend of traditional TV programming and modern digital content."
Machinima isn't alone
Verizon will also use content from a number of other partners Awesomeness TV, MTV parent company Viacom, Comedy Central, Nickelodeon and the NFL, according to CNET. NFL content will only be available to Verizon phone customers, but the service is available to non-Verizon customers. The collection of both online digital companies like Machinima and more traditional networks means Go90 offers a blend of traditional TV programming and modern digital content.
Another reason to cut the cord
Analyst Rich Greenfield told CNET that Verizon is making it easier for people to cut out cable because their service allows viewers to watch certain kinds of cable content on a mobile phone for free. Verizon's Go90 service is paid for by advertising, so people can view its content for free without paying a monthly subscription. This way of monetizing OTT isn't as popular as a subscription business model, but it can be successful. The company will allow Go90 on mobile devices only. This is different than many other OTT services that have popped up in the last few years, according to CNET. This goes along with Verizon's plan of targeting millennials with the new OTT service.