VideoEgg Hits 3 Million Uploads

VideoEgg and its content delivery network Akamai Technologies have announced this morning that the two companies have passed 3 million video uploads together.  Akami provides the webcam capture and video uploading service for users of some AOL sites, Bebo, hi5, Piczo, myYearbook, Dogster, Tagged and others.  

VideoEgg says it’s now serving 15 to 20 million video streams each day. US users consume about 230 million video streams per day, according to ComScore. You might remember that YouTube announced that it hit 100 million streams a day back in July. It’s bandwidth costs were already believed to be well more than $1 million per month by that time.

VideoEgg’s ad network, rolled out late last year and dubbed The Eggnetwork, claims to be the largest ad network for social media sites and it is undoubtedly substantial.  The company’s elegant and unobtrusive banner ads are a model that the rest of the industry is likely to follow.

The combination of white labeling video services for users and offering an ad network for B2B customers is a strategy that appears to be paying off uniquely well for VideoEgg.  It’s frequently discussed as a shining light in the video startup space that’s grown blurry post GooTube.

VideoEgg has received funding from August Capital, First Round Capital and Maveron.  The company was launched about 18 months ago by a team of Yale classmates whose decision to move to Silicon Valley was widely discussed as an example of the area’s continuing importance in the industry.