Dailymotion is no longer for sale

by bold-lichterman

Stéphane Richard, the boss of Orange, announced that the development of the start-up would be done “within” the group, which re-injects 30 million euros.

Change of direction. While Orange was looking for an American partner to boost Dailymotion’s international growth last January, the operator with 230 million subscribers adopts a completely different strategy to support its star subsidiary, which is making headlines in the press. since its abortive takeover by Yahoo!

Orange announced yesterday to our colleagues Echoes that it was re-injecting 30 million euros into the video site, “with the aim of tripling its turnover in 2016, from 37 to 100 million euros”, indicates to the newspaper Stéphane Richard, the CEO of Orange. The objective today is to develop the startup in the bosom of the operator: ” We decided, after discussing it with the Dailymotion teams, to implement a business development plan within Orange (…) We will recruit 60 people, or a third of the workforce, mainly in France, and open offices in Spain, Japan, Canada and Brazil. At the same time, Dailymotion, which already achieves 85% of its turnover abroad, must place more emphasis on countries such as Germany, the United Kingdom and the United States ”.

A win-win synergy

Always according to the echoes, the development plan devised by Orange aims to create synergies between the start-up and the group, a real “change of mind” according to daily sources. It is true that until now, one could wonder why the global group did not serve more as a transmission belt for the young shoot, which, by its profitable model, its good audience rates and an innovative platform, has the potential to help Orange enrich its offer.

Orange will therefore now integrate the application on the home screens of its smartphones with the approval of manufacturers, except Apple.

Focus on emerging countries

For the CEO of Orange, the process of selling shares in the startup to an international group is “closed”. After the quack of failed negotiations with the firm headed by Marissa Mayer, the offers apparently came from Vivendi, Largardère or CCM Benchmark.

The fate of Dailymotion will therefore not be played out for the moment under the American flag, despite the breakthrough it has managed to face the giant YouTube, which remains 10 times more powerful in terms of audience and 30 times in figures. business, as indicatedThe echoes.

But Stéphane Richard is relatively clear on the geographic strategy of the Dailymotion support plan. The video offer will be offered in Senegal, for example, and in countries where the operator is established. Africa represents a very interesting market potential for Dailymotion: it is the second largest mobile market in the world with 40% growth per year since 2000. In addition to the interest of audience sizes, mobile payment in Africa is growing and could benefit from video-on-demand services like Dailymotion.

We must therefore look elsewhere. We do not remember enough to what extent the other continents, in particular Asia, Latin America, Southeast Asia and sub-Saharan Africa represent gigantic markets to be seized, where the populations did not expect us. on their internet consumption.