New hope for shows made for web

By Brian Stelter in The New York Times:

After a protracted drought, money is trickling back into the professional Web video industry. So-called branded entertainment deals like the one by Ikea are becoming more common, helping to nourish new programming. And venture capital firms are also paying new attention to the industry. My Damn Channel, which distributes “Easy to Assemble,” will announce a $4.4 million infusion of financing on Monday, joining companies like Blip.tv and Machinima in raising money this year.

The promise of Web video has risen and fallen over the last few years. What makes the current round of interest more compelling is the realization in the industry that Web video will not supplant television viewing anytime soon, just complement it. That partly explains why the companies have stopped labeling themselves “TV on the Internet.”

“We realized we were putting a burden on Web-original programming by trying to make it like TV,” said Lance Podell, the Next New Networks chief executive, who now calls his company a provider of “Web original programming.”