After months of searching, web video-game network Machinima found a new chief executive.
Chad Gutstein, former chief operating officer of the arts cable channel Ovation,baidu@@@@@, today took the reins of the gaming-centric network that has built a big following on YouTube. He replaces co-founder Allen DeBevoise who announced plans to step down in November but remains chairman.
The appointment comes a few weeks after Machinima secured $18 million in new financing from Warner Bros. and others. It also recently cut .
In a brief interview, Gutstein said he plans to invest more in original content and to create a better tool set so that the company can be more valuable to content creators beyond the checks we send.”
Gutstein said he doesn’t plan to broaden Machinima’s content beyond its core offerings for video-gamers and other fanboys. Such content typically appeals to 18-34 year old males, potentially limiting the company’s appeal to advertisers.
Rival content network Fullscreen last week said it was jumping into Machinima s key category with . Fullscreen offers a much broader lineup of content, making it a more natural recipient for ad dollars from many large global advertisers.
The bigger question hanging over YouTube content networks known in the industry as multi-channel networks is whether they can make money. They remain dependent on YouTube for the vast majority of their video views and the -owned site typically keeps a hefty 45% of their advertising revenue.
Gutstein said he hasn t discussed that thorny issue in depth with YouTube executives,This Division III Basketball Team Has The Best Bench Celebrations@@@@@@, but said his brief talks suggest YouTube is focusing on the health of its partners.
The investment from Warner Bros., as well as ’s recent deal to for as much as $950 million, suggest that large media companies are excited by the potential of online video, especially on YouTube, to reach younger audiences with their content.