The Young Turks (TYT) is a web based politics and news commentary show. They recently raised $4 million to help grow their network. The You Turks show brings in about 70 million views each month and has a network of about 25 different YouTube channels. They now cover everything from sports to TV and movie reviews since moving to YouTube.
The Young Turks started as a radio show before moving to Current TV. When Current TV was sold the show was canceled and the owners moved it to YouTube. TYT now receives 50-60% of their revenues from YouTube ads. A additional 25-35% comes from a premium subscription model. Additional revenue comes from merchandise sales.
“For right now, we wanted access to capital with as few strings attached as possible,” said Steve Oh COO of TYT. “We have no desire to grow this quickly and exit quickly… We want to build this into a sustainable business.”
With the money TYT plans to expand into more platforms and streaming devices like Apple TV. Mobile phone and tablet apps area also in the works for Apple and Android devices. TYT already has a Roku app and hopes to grow on its success.
TYT also hopes to use the money to build a sales team. They hope to start selling ads during their shows “We’re leaving money on the table” Oh said.
Seeing venture capital moving into online video studios like The Young Turks is a very positive sign for the future of the cord cutters movement. As investors see the possibilities of a online video we should see a flood of new high quality options that do not require a TV subscription. The Young Turks move from the cable channel Current TV to You Tube shows there can be life for TV shows after the death of their cable network.