A new start-up, Kumo founded by CEO Neil Davis, is expected to raise USD 50 million to break the traditional “TV bundle” and provide customizable a la carte television for every viewer. That is expected to give viewers the opportunity to pick and choose certain channels or getting access to an incomplete library of content long after it’s released through Netflix or Hulu.
The investor names are still undisclosed but One source close to the deal says that Mark Cuban, Revolution, Aol co-founder Steve Case’s investment firm, are involved in the round. The Other potential institutional investors include Providence Equity Partners, the Chernin Group, and Guggenheim Partners, are also looking on media-focused companies.
Tech Crunch says: Unlike Aereo, which paired a remote antenna service with a cloud storage service, offering nearly live television access and DVR for 30 different broadcast channels, Kumo is taking a different approach. Sources claim that Kumo is working to license content, which would mean that at least one media company will be agreeing to break the bundle, though it’s unclear who that seller will be.
Historically, big players who have approached the idea of breaking the bundle haven’t succeeded, based mostly on the fact that the cost of an individual channel vs. the bundled option media companies provide is so high that the margin disappears. Kumo is obviously venturing into dangerous territory with fewer resources than those who have tried before them, but perhaps time will be on the startups’ side.
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