The Dailymotion purchase has been the talk of town back when 49 percent of it was bought by Orange back in April 2011 for $78 million. But now that Orange has finally purchased the remaining 51 percent for $80.6 million, it looks like Dailymotion is set to finally compete with the big guns.
Not so fast though.
Even though Orange now owns 100 percent of Dailymotion, the website is still a far cry from its competitors, most noticeably the video sharing giant YouTube.
Reports have indicated that Orange is looking for American businessmen to invest in Dailymotion. A statement from the company confirmed that it does not plan to wholly manage Dailymotion as it now opened its doors for investors to come right in. The statement said that it is looking to invite American investors, so that Dailymotion can finally penetrate the United States market, which was long held by YouTube.
“It is not our ambition or our role to remain a 100% stakeholder of Dailymotion and we are currently working to find the right partner/s,” the company statement said. “Dailymotion needs to find a solid strategic partner, probably American, that is capable of opening the doors to the US market.”
What lies ahead
Dailymotion is a solid company that has 2.5 billion views a month and 106 unique hits, according to the latest report. But although the numbers have been impressive, it is still a far cry from YouTube, which currently dominates every known aspect of the video-sharing network industry. The Dailymotion purchase wasn’t much of a surprise, especially since its previous owner no longer seems interested in investing in the company.
However, what lies for Dailymotion in the future will largely depend on how far Orange is willing to go to make the website the platform of choice for the global market. Dailymotion was big in France and even in some areas of the United States, Turkey, Japan and other Western countries. The interface being used by the website was impressive. Even the amount and quality of videos that can be found there are diversified, much like with YouTube.
Still, Dailymotion found it hard to really connect with the people. You can simply see this from the amount of interactions in each video. For example, the same video uploaded in YouTube can generate thousands of comments and views in mere hours. On the other hand, Dailymotion will get a hundred views at best, and not so much comments.
The latest statement from Orange, however, showed that the company is not even willing to shell out that much money for Dailymotion. By opening its doors to foreign investors, it also quietly announced that Dailymotion is not a risk they want to take. Although the website is still as profitable as other video-sharing websites and search engines out there, Orange’s plan to hold investments is not something to be desired. It then makes you wonder why Orange went through the Dailymotion purchase in the first place, other than diversifying its network of companies.
Source: Tech Crunch