The venture capital fund, which is managed by Troika Dialog, has invested $4.25 million for a majority stake in VidiMAX, on-demand online movie service, Troika announced on its corporate web-site. The service is expected to launch in spring 2010.
VidiMAX develops a platform to distribute licensed video content over the Internet directly to end-user’s TV. The user will need to have a broadband internet connection in order to receive the VidiMAX streaming service including in High Definition (HD). VidiMAX will initially target Internet service providers and pay-TV operators with its video content platform. On average, only 10 percent of Russian pay-TV subscribers use online movie-on-demand service.
VidiMAX was founded in 2009 by Svetlana Belova (WidiMAX CEO) who previously led Netville, digital content distribution company, and worked for cable TV and Internet access operators Stream and Akado as well as by Pavel Rebrov who worked for Cisco in Russia as IPTV business development manager.
Digital content distributor Netville, which is together with producer of Pay-TV channels Almirida raised funding from Moscow-based Delta Private Equity Partners, was later merged into National Telecommuication Company (NTK) and then sold to National Media Group in June 2008.
In February 2008, Ru-Net II acquired content distribution platform Digital Access.
Troika, which manages three regional venture funds with initial equity capital of $50 million, has invested in online note application service Evernote, security software vendor SnS, restaurant ERP sofware vendor Iiko, and five other companies including VidiMAX.