News Bytes: November 5

Video Startup Veoh Cuts 18% of Staff
via TechCrunch

Online video site Veoh is laying off 20 people, or 18% of its staff of 110. The move comes a month after a Paidcontent reported layoffs in Veoh’s Russian office in St. Petersburg, which CEO Steve Mitgang says was a strategic decision rather than a financial one, as Veoh wanted to move its development staff to San Diego (where it has hired a replacement team).

This round is more of a financial move, given the new economic reality. The company insists that it is still strong on a financial front, and expects to be profitable next year, although CEO Mitgang admits profitability could be pushed out a quarter. Despite the somber news, he is confident Veoh will emerge as one of the few surviving video sites in what will no doubt be a coming shakeout.

According to comScore, visitors to the Veoh.com in the U.S. have come down from 4.5 million people in June to 3.8 million in September. And total minutes spent on the site has similarly dropped from 99.6 million minutes in June to 66.8 million in September. That drop in visitors is more than made up for in the growth in its standalone video app, Veoh TV, which reached 2.3 million people in the U.S in September. Globally, 16 million people watched videos on the site in September, and another 12 million watched via the app (see chart below).

The company has raised $70 million, including $30 million just last June. We are adding this announcement to our Layoff Tracker.

FCC Approves Use of "White Spaces" for Wireless Broadband
via Digital Media Wire - connecting people & knowledge

Washington - The Federal Communications Commission (FCC) voted on Tuesday to authorize the opening of unused portions of the broadcast spectrum to deliver wireless broadband Internet access. "Opening the white spaces will allow for the creation of a WiFi on steroids. It has the potential to improve wireless broadband connectivity and inspire an ever-widening array of new Internet based products and services for consumers," said FCC chairman Kevin Martin.
read more

Mobile Content Bits: Pepsi-QR Campaign
via mocoNews.net

-- Pepsi UK launches mobile QR campaign: A massive mobile ad campaign in the UK using QR codes. PepsiCo plan to put QR codes on 400 million cans and bottle, reports Brandrepublic.com. When a consumer takes a photo of the code with their camera phone, they will be sent to a WAP site where they can access games, ringtones and wallpapers or win prizes. The QR codes will be placed on all Pepsi brands, including Pepsi, Diet Pepsi, and Pepsi Max. Users must first download a QR reader to their phone if they don't already have one. They must also have internet access on their phone.

Echostar-Owned Sling Launching Online Video Portal; Hoping For Multi-Screen Convergence
via paidContent.org

Sling Media, the place- and time-shifting device company that is now owned by Echostar (NSDQ: SATS), is launching something that seems counter-intuitive on the face of it: a free, ad-supported online video portal aggregating video from various professional sources like TV networks, studios and other independents. Sling.com will launch as a video portal on Nov 24.

Anyone can use the site—they don't have to be a Slingbox user/subscriber, though if they do have it, they can plug that into Sling.com site, and watch live TV through their own TV boxes (like they do now through their online accounts, only in this case it is all integrated).

I spoke to Jason Hirschhorn, the president of its entertainment division, and he explained to me the rationale for the site. The site had been in works even before the company was bought by Echostar, and had been delayed for a bit while the content deals were coming in place.

Content wise: it has a lot, but the glaring omission is *Viacom/MTV Networks*, which means Comedy Central's popular shows like The Daily Show and the Colbert Report are not available.

Hirschhorn said the company is working on a Viacom (NYSE: VIA) deal and hopes to have something to announce soon. And Sling has the Hulu deal, which means it has everything from there except, well, Viacom content. It has also done separate deals with Warner, MGM, Sony (NYSE: SNE) Pictures, CBS, and others, and is working on doing more. On the movie side, it only has 125 of them, but is working on more. Unlike some of the others, it is also aggregating video news content from AP, Reuters and others. Since most of the media companies don't do exclusive content-distribution deals, it will get all of those deals anyway, and be competitive on content library, the company hopes.

More details after the jump

Functionality/design: more cluttered than Hulu, but then so is every other video site, compared with Hulu's minimalism. It has good IPG and search capabilities, more editorial curation and blogs from editors. Sling.com has tried to build in a lot more social functionalities, like a news feed of your friends, a la Facebook, profiles, sharing, etc. It is also building connections into other social sites, and working on building widgets and apps for those as well.

Challenges: Huge. Tons of competition from everyone and their mother in law. But Hirschhorn thinks it is still early in the game and no one has won the online video battle. Also, with Echostar behind them, and Charlie Ergen's support, they are in it for the long haul. Also, online is just one part of the full spectrum for them: with Slingbox, users can watch home TV and DVR online; with doing the same on mobile with SlingPlayer Mobile, with its SlingCatcher service, users could do the reverse: bring online video onto their TVs. Sling.com is another in that spectrum. The convergence hope, in other words. The company also recognizes that the Slingbox is an intermediary product, and that it will soon be integrated with Echostar's boxes itself. Echostar is the number-two satellite player, so Sling's distribution will be through those channels in the long term. Conceivably, it could also white label its video portal for cable and satellite providers. But if it could pull this convergence thing off, it would be in competition with the likes of Apple and Comcast, not the online video players

The big internal challenges would be: how long does Echostar keep supporting it; how long before the main entrepreneurs within Sling, the founder Krikorian brothers and Hirschhorn stay with the company; where do they get the big online traffic funnel, being a company with little online consumer presence; and how do they build up monetization and a sales team, not something the company has been known for till now. And then, that economy thing…
More screenshots of the service here.