Sky has increased its investment in 1Mainstream, a tech startup which operates an automated distribution platform for linear and on-demand video to internet-connected devices such as Apple TV and Xbox.
Sky uses 1Mainstream’s platform to significantly broaden distribution of its OTT services such as Sky News and NOW TV to its growing digital audience.
The broadcaster invested an initial $2 million in August 2013 and has now invested a further $5 million in the form of a convertible debt security.
As part of this transaction, 1Mainstream plans to create a new subsidiary, with Sky as a shareholder, focusing on new product concepts.
Emma Lloyd, Sky’s Director of Corporate Business Development and Startup Investments, commented: “We are delighted to be demonstrating our commitment and belief in 1Mainstream by making this additional investment.
“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.”
Rajeev Raman, CEO and Co-founder of 1Mainstream, commented: “It’s hard to overstate Sky’s role in our development and growth. Their spirit of innovation and ability to partner with a young organisation 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.”