How Oovvuu grew its video platform to over 400 million streams per day
Ricky Sutton co-founded the company to help publishers claw back advertising dollars from the Google/Facebook duopoly.
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There aren’t many stable careers in media anymore, but by 2014, Ricky Sutton had worked his way up the executive ranks to a point where he was pretty much guaranteed a cushy salary and steady employment for the rest of his life. He got his start in the early 90s as a newspaper journalist in the UK, and over a period of about a decade had managed to leapfrog from covering local news to serving as a war correspondent to holding senior level positions at major media companies.
By 2009, Sutton was running the video division of Fairfax Media, which at the time was one of the largest newspaper holding companies in Australia. He’d reached the upper echelons of the media industry, but then he decided to throw all that away so he could co-launch a bootstrapped startup that paid him absolutely nothing in salary. “That was the least likely career path for someone in my position to take,” he told me. “It would've been so much easier just to stay in the job and earn the salary. But I just couldn't do it. I just couldn't be part of the decline. I had to be part of something else.”
That “decline” Sutton spoke of was that of traditional media. Working on the digital side of these mainstream publications, he’d watched as they struggled to monetize their online audiences, mainly because they were stuck with low-performing display ads as their sole revenue source. Meanwhile, large tech platforms like Google and Facebook were siphoning off a larger and larger share of the advertising market, partly because they controlled the levers of distribution.
As the head of video at Fairfax Media, Sutton knew that video inventory was more valued by advertisers and could be sold at much higher rates. But the problem, as he saw it, was that most publishers weren’t optimized for producing video at scale, and what little they did produce was often uploaded to Facebook and YouTube, the very platforms that had cornered the ad market.
So what was his solution? In 2014, Sutton and two other co-founders — Greg Moore and Ross McCreath — launched Oovvuu, a distribution platform that allowed text-based publishers to embed high-quality video from broadcasters like the BBC. While the going was slow at first — Sutton had to sell his house and went years without a salary — Oovvuu eventually scaled to hundreds of publishers and over 400 million video streams a day. Its stated mission is to “put a relevant video in every article, tell trusted news to a billion people, and repatriate $20B from the tech duopoly back to publishers and broadcasters,” and it claims to increase a single article’s monetization potential by a factor of 16.
So how did a startup with virtually no resources take on some of the largest tech behemoths in the world? In an interview, Sutton walked me through the company’s early days and explained how, publisher by publisher, he slowly convinced an entire industry to band together against a common foe.
Let’s jump into my findings…
Learning the power of distribution
There wasn’t a single lightbulb moment that led to the creation of Oovvuu, but Sutton landed on a key insight in the mid 2000s when he briefly left the traditional media world to fill in for someone’s maternity leave at Microsoft. At the time, the company oversaw a partnership between its MSN portal and an Australian television broadcaster, and Sutton served as an editor of this joint vertical.
It was while in this role that Sutton gained a true understanding of the advantage these large tech companies had over publishers: distribution. By leveraging platforms like Bing, Hotmail, and the MSN portal, Microsoft could unleash tens of millions of users onto any new product or service. For instance, while there he worked on a product that detected surging trends in Bing searches and then served them up to an editorial team that was responsible for creating content around those trends. “We could write a story about it and it would be guaranteed to trend because you were writing the story on a topic people were already interested in,” he said. “It was like dropping a donut into an ants nest.”
The product was called The Fix and scaled up to six million readers in three months, making it the most popular entertainment news site in Australia. This was a level of growth Sutton had never witnessed firsthand before. “It was a real eye-opener to me that you could be a brilliant newser, but if you don't have the distribution, you're going to really struggle. And Microsoft had all the distribution.”
That insight was baked into the launch of Oovvuu. Sutton knew that publishers, collectively, generated billions upon billions of article views each month — he estimates it’s at least 300 billion — and he figured that if he could just get a sizable portion of the publishers to all embed the same video player in each of those articles, then they could all benefit from the combined scale.
The only problem was that the video player needed actual video content to stream through it, which created a chicken-and-egg problem — broadcasters had no incentive to give him video if he didn’t have a distribution network, but at the same time publishers had no incentive to embed his player if it didn’t have any video content.
Luckily, Sutton was able to convince two broadcasters, the BBC and Bloomberg, to license over their content on a revenue sharing basis. Armed with this footage, he began trying to convince publishers to embed Oovvuu’s video. The Murdoch-owned News Corp, a former employer of his, ended up being the company’s first customer. “We had a Brightcove account and so did they” — Brightcove is a platform that allows publishers to publish their own video — “And so we got our Brightcove video player and their Brightcove video player to talk to each other, and so we would press a button and a BBC documentary about a manned mission to Mars would be sent to them and it would appear in their article with their ads. It would make money, we'd all get paid.” To start with, this process was entirely manual, with Oovvuu’s staff chopping up video clips and pairing them with relevant articles.
The product was incredibly rudimentary and required the cobbling together of different tech products, but it worked. Within a few months, News Corp was generating tens of thousands of dollars a month, and it eventually decided to put staff in place whose job it was to embed more videos in articles.
At that point, Sutton had a viable case study of the product working for a well-known news brand, so he set off to find more publishing partners.
Building a network one publisher at a time
Given the size of Oovvuu today, I was surprised that it grew for the first several years without any outside funding. According to Sutton, it wasn’t exactly for a lack of trying. “Every single VC I went to basically said, ‘so you're like YouTube.’ I’d tell them no, and then they’d say, ‘well, you need to be like YouTube if you want our money.’ And I was like, ‘well, we've already got YouTube. I'm trying to create something new and different.’”
With fundraising prospects fairly bleak, the Oovvuu team had to bootstrap the entire endeavor. “I sold my house, and my two co-founders and I took no salary for four years,” said Sutton. “All the money we made, we used to hire staff.” It wasn’t until 2018 that the company raised its first investment round, and by then it already had a large roster of clients and was profitable.
So how did Oovvuu build that client base? One client at a time. “We made hundreds and hundreds and hundreds of phone calls,” Sutton said. “I spent tons of time on airplanes going to meetings with people who looked at me stone-faced and said they’d never become a customer.” Whenever Sutton received this response, he convinced the potential client to revise their statement from “no” to “not yet” by pointing out the speed at which internet publishing was changing. “That way we can have another conversation in a year and do [the deal] then.”
As Oovvuu’s client base grew, its product became more robust in its offerings. In the early days, Sutton’s team actually handled the video advertising sales, but he found this created a conflict with the already-existing sales staff at these outlets, so the company turned the ad sales over to the publishers. Over time, Oovvuu went from a revenue sharing business model to a traditional SaaS structure. On the broadcast side, the company would simply license the video footage, and then it would sell its tech to publishers on a subscription basis. Under this fixed cost structure, it became much easier for all parties to project expenses and profit margins.
Oovvuu also built out a full tech stack, one that integrated with all the major publishing platforms like Wordpress and Arc. One of the biggest reasons customer articles were being published without an embedded video was that a member of the staff simply forgot to embed a video, so Oovvuu built a widget directly into the CMS that served up video recommendations on the article formatting page. This required the company to implement a machine learning algorithm that could scan the article text and pair it with a relevant video. Sutton explained that every time a journalist chose one of the recommended videos, it improved the algorithm. “That gave us a feedback loop that enabled us to teach our tech stack to make a better recommendation next time.”
So how relevant are the suggested videos? To understand this, it would help to take a look at a few in the wild. Here’s a small selection:
A News.com.au article about Ariana Grande filing for divorce includes an Oovvuu video player that streams a video produced by Page Six. The video basically covers the same exact topic as the article, and when I streamed it I sat through a pre-roll ad encouraging me to visit North Carolina.
A New Daily article about the sexual assault allegations against Russell Brand includes a video produced by a company called Bang Showbiz. The video covers the allegations and didn’t include a pre-roll ad when I watched it — perhaps since the subject matter isn’t considered “brand safe.”
A Toronto Star article about that city’s budgetary issues includes a CBC video of the mayor conducting a press conference on those same issues. The video included a pre-roll credit card ad.
As Oovvuu’s footprint grew, all the major media buying agencies became familiar with how to interact with its adtech stack, so it’s relatively easy for publishers to sell ads into its ecosystem. “Every agency in the world knows who Oovvuu is now,” said Sutton. “So they will buy Oovvuu content on a new publisher because they know it's worked elsewhere.”
The next frontier: serving video on 300 billion article pages
In 2018, Oovvuu raised its first investment round, and Sutton and his co-founders were finally able to take a salary. They took that money and mainly invested it in Oovvuu’s platform development and the company’s marketing efforts. Today, it services hundreds of publishers all across the globe, and its video player streams content over 400 million times per day.
Recently, Sutton stepped down from Oovvuu and appointed a replacement CEO. “I stepped back because the company is not a startup anymore, and I’ve come to realize that my skill is in starting things, creating things.” Recently, he launched a newsletter dedicated to covering generative AI’s impact on publishing, and his next company will probably be aimed at helping media outlets interact with AI platforms in a way where their content isn’t devalued.
But that’s not to say that Oovvuu has completely solved the challenge of audience monetization. “There are 300 billion page views of news content published every month, and only 2% of them have a video embedded in them today, which means that 98% of publishing isn't benefiting from a 30X increase in revenue per page,” said Sutton. “That's a systematic failure of the media industry that needs to be solved because the public wants it, the advertisers want it, the publishers want it, the broadcasters want it. That's the next step for Oovvuu, but it's also the next step for the entire publishing industry.”