French social video site DailyMotion has raised a $34 million round from Advent Venture Partners LLP and AGF Private Equity, a division of Allianz AG. The new round comes on top of $9.5 million in previous financing from Atlas Ventures and Partech International. The round puts DailyMotion’s total financing beyond that of their competitors, even MetaCafe’s $45 million total financing. Dailymotion’s executive chairman, Mark Zaleski, said the new funds will “allow us to reach operating profitability”.
These larger investments may be a sign of increasingly competitive times or a desire to take their companies all the way to a public offering. YouTube only raised $11.5 million to reach their exit.
DailyMotion has faired well in the competition for second place amongst video sites. They currently attract 37 million visitors a month. Some of this success is no doubt due to the viewers drawn to pirated content hosted on the site. For instance you can still get complete episodes of The Office. They were also recently found guilty of copyright infringement in July. This is despite implementing Audible Magic’s fingerprinting technology back in June.
However, as others have, they are seeking to clean up their act. When they launched in the U.S., they announced they would seek legal content deals and begin rewarding top content producers. Today’s announcement is more specific, highlighting plans to negotiate deals with makers of music, movies and TV shows. Dailymotion has already signed deals with Universal Music Group and Warner Music Group.
Another French company Blogmusik cleared its record in France, signing a deal to continue streaming music as part of a suspected revenue sharing plan. U.S. based Pandora is still kept from going international because of the webradio royalty rates.