1Mainstream, a startup that has developed a multiscreen distribution platform for live and on-demand video, said U.K.-based entertainment company Sky has invested another $5 million as part of a deeper relationship under which 1Mainstream and Sky will create a new subsidiary focused on new product concepts.
The new investment, made in the form of a convertible debt security, follows Sky’s $2 million investment in 1Mainstream in August 2013. Including the new $5 million infusion from Sky, 1Mainstream has raised a total of $8.75 million.
Sky already uses 1Mainstream’s platform to deliver OTT services such as Sky News and NOW TV, which features monthly entertainment packages and daily and weekly passes for Sky Sports.
Founded in 2012 by former Roku, TiVo and Apple execs, 1Mainstream works with more than 70 content providers, including CBS, Fusion TV (Univision/ABC), Foxtel, ACC and Tastemade. Platforms supported by 1Mainstream include the Amazon Fire tablet, Amazon Fire TV, Android tablets, the Apple iPad, Apple TV box, Google Chromecast, Roku devices, Samsung smart TVs, the Xbox 360 and Xbox One, and Web browsers. Platforms on 1Mainstream’s roadmap include the PlayStation 3 and PlayStation 4, LG TVs, and Windows 8 devices. 1Mainstream makes components that would put it in competition with companies such as Comcast-owned thePlatform, Brightcove, Ooyala, and Piksel, among others.
Sky’s investment follows other recent financial backing made in OTT and multiscreen startups and companies, including Pluto TV, Whistle Spots, Elemental Technologies, and Roku.
“We are delighted to be demonstrating our commitment and belief in 1Mainstream by making this additional investment,” Emma Lloyd, Sky’s director of corporate business development and startup investments, said in a statement. “Our partnership is a great example of the way in which we find innovative and forward-looking startups that support our key business goals. We’ve already seen the real value by extending the distribution of our content onto new platforms and into new geographies. The 1Mainstream team have some exciting new product ideas in the pipeline and we look forward to exploiting those in the future.”
“It’s hard to overstate Sky’s role in our development and growth,” added Rajeev Raman, CEO and co-founder of 1Mainstream. “Their spirit of innovation and ability to partner with a young organization is a rare and potent combination that we are very excited to be a part of. The opportunity to jointly define and build the next generation of digital OTT services is phenomenal. We are very much looking forward to expanding our partnership.”