The Digital Media Marketplace Continues to Take Shape; Economies of Scale

Digital media has been center stage for quite sometime and some of the players are recognizing the opportunity to gain a big share. YouTube's video sharing platform has been a breeding place for digital media companies to develop a demographic. What's next? Major studios have taking interest in securing their place in this growing media marketplace. Hulu and Netflix have already commercialized digital media licensing. Again, So what's next? Well, Maker Studio has accomplished a $36 million dollar investment from Investors including Time Warner. Now Break Media and Alloy Digital have merged to achieve an economies of scale in a 50/50 partnership. Break Media and Alloy Digital will now become Defy Media an Internet Video Company. Defy Media will take on its members demo and cater to a young internet audience. According to Variety, Alloy Digital claims to reach 90 million visitors per month and Break Media, a Lionsgate Company, claims to reach 70 plus million uniques monthly. Alloy and Break has 240 and 210 full time employees respectively. Defy media's combined annual revenue is 100 million dollars annually and will see a profit.