Machinima draws $24 Million in New Funding, Cuts Staff and Channels
Gaming-themed digital network Machinima has accepted $24 million in new funding thanks to its latest round of financing, during which Warner Bros. added to its stake in the company. However, despite the new funding, Machinima has also moved ahead with cuts, dropping 13 staff and bringing its headcount down to 77. Some of Machinima’s longest-running channels are also getting the ax amid declining popularity and as a result, declining revenue. The content on the chopping block simply wasn’t pulling its weight as the company aims for eventual profitability.
Machinima was one of the first multi-channel networks to gain popularity and jump into the business world, drawing investments from venture capitalists and media companies. Though despite the continued popularity of gaming-related content on YouTube and other online video sites, Machinima has lost some traction since its earlier days. As of 2014, with a new CEO at the helm, the company has recovered a bit, but hasn’t been able to match it’s peak popularity as other MCNs like Maker Studios and Awesomeness TV have largely stolen the spotlight.
Read More on Variety