Veoh sees new service as 'virtual cable'

LOS ANGELES -- Veoh Networks Inc. is launching a Web video syndication service today that uses peer-to-peer technology to distribute DVD-quality video and publish it on the Web's most popular sites, including MySpace and YouTube.

The privately held company hopes to become an online television service, allowing content creators to build their own channels and viewers to easily find and download video.

Veoh hopes to distinguish itself from competitors such as Brightcove, Revver, and others by the use of a peer-to-peer network that will allow the delivery of huge video files more efficiently. With Veoh, users share the load of transmitting content, which is generally sent in small chunks from PCs that have its software installed.

The company is also touting its virtual digital video recorder service, which allows users to subscribe to programs or download video from any website.

The San Diego company has raised $12.5 million from investors such as Michael Eisner, former chief executive of Walt Disney Co., and from Time Warner Inc. and private venture capital firms.

Once content creators upload their videos to Veoh, the content can be instantly syndicated across the Web to popular sites such as YouTube and Facebook. The videos also can be distributed to blogs, Really Simple Syndication feeds, and portable devices such as Apple Inc.'s iPods.

The site has already signed deals with US Weekly magazine to create a celebrity news channel. The Hollywood talent agency UTA also has agreed to create a channel to audition clips from aspiring filmmakers and actors.

Veoh chief executive Dmitry Shapiro calls his service a "virtual cable operator" that can support an unlimited number of channels.