MTV buys iFilm clip site to bolster online presence

by Sam Matthews, Brand Republic 14-Oct-05, 08:30

LONDON – MTV Networks has acquired iFilm, a website that shows short films and news clips, for $49m (£27.9m) as part of an ongoing atrategy to expand its presence on the internet.

Viacom-owned MTV plans to increase iFilm's reach to 10m users a month and boost ad revenues by cross promoting the service with other MTV-owned websites and offering MTV content to iFilm users.

MTV said company's intention was not to MTV-ise iFilm, but was about combining the top digital brands.

Judy McGrath, chairman and CEO of MTV Networks, said: "This move is at the heart of MTV Networks multi-platform strategy and meshes with our tradition of cultivating independent and creative brands.

"We're combining the top brands in all digital media with our global reach and programming expertise to speak to consumers everywhere they live their lives."

McGrath added that with iFilm's strong business profile and growing traffic, MTV sees significant opportunities for us to increase our online advertising revenue.

iFilm will retain its editorial independence and will be run by its current chief executive Blair Harrison, who will report to Jason Hirschorn, MTV's senior vice-president.

Hirschorn said that iFilm had been a major catalyst of online viral video and in allowing consumers to become publishers, which has built into a major video library over the last seven years.

"The expansive content on the site makes it a must-visit -- iFilm is simply one of the most vibrant online destinations out there. We look forward to growing its user base and business opportunities together," Hirschhorn said.

It joins recent MTV acquisition Neopets, an online youth community geared toward virtual pets in June for $140m.

There is a growing trend by media owners to buy up successful online companies. Last month News Corporation bought videogame and movie website company IGN Entertainment, which owns GameSpy and Rotten Tomatoes, and Intermix Media, owner of myspace.com, as part of a $2bn internet spending spree.

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