Veoh

About Veoh

Veoh Networks positioned itself as an internet television service, founded in 2004 by Dmitry Shapiro and officially launched in February 2007. Shapiro, a Russian immigrant with a background in electrical engineering and web development, previously founded the cybersecurity firm Akonix Systems. The idea for Veoh reportedly came to him during his honeymoon in November 2004, months before YouTube's launch, with the vision of enabling anyone to broadcast video online.

The company's platform was designed to distribute high-quality, long-format videos, aggregating content from major media companies like CBS and ABC alongside independent productions and user-generated material. It distinguished itself from competitors like YouTube by focusing on a downloadable application that organized videos, similar to an iTunes for video, and facilitated a lean-back, television-like viewing experience. This required users to install software, which presented a hurdle to adoption compared to browser-based streaming. Veoh's business model relied on advertising, with plans for behaviorally targeted ads based on users' viewing habits.

Veoh attracted significant attention and approximately $70 million in funding from prominent investors, including Time Warner, Intel Capital, Goldman Sachs, and former Disney CEO Michael Eisner, who also joined the board. At its peak, the service drew over 28 million unique monthly users. However, the company faced substantial challenges. A major lawsuit was filed by Universal Music Group (UMG) in 2007 over copyright infringement. Although Veoh ultimately won the case and subsequent appeals, with courts affirming its protections under the Digital Millennium Copyright Act (DMCA), the prolonged legal battle drained the company's financial resources. High operational costs, reportedly up to $4 million a month, combined with the economic downturn and the lawsuit's financial strain, proved unsustainable. In February 2010, Veoh filed for Chapter 7 bankruptcy. The company was acquired by Qlipso in April 2010 and later by Japanese firm FC2 in 2013, before announcing it would shut down on November 11, 2024, with its content library being moved to FC2 Video.