Blip.tv Revolutionizing Web TV With $10.1 Million Financing Round

In recent months, Blip.tv has been forging ahead in an attempt to engage viewers, crush competition, monetize and secure a spot at the top of the online video industry. We recently covered Blip.tv’s partnership with 7-Eleven on their Road Trip Rally web series and their expansion into Hollywood. This morning the online video site is announcing that it has raised a whopping $10.1 million in their third funding round.

This third funding round has far outshined Blip’s previous funding rounds. In June 2007 the company raised $2.5 million and in October 2008 they raised $5.2 million. This $10.1 million round should help Blip.tv a lot in terms of reaching their goals for the future of the video site.

The money, which was contributed primarily by Canaan Partners and also included Bain Capital Ventures, will be used to grow the company’s business and reach in the arena of web video distribution and monetization. According to NewTeeVee’s Ryan Lawler, Blip.tv currently serves up around 90 million streams each month. 85 percent of those streams are monetized with ads from big-name marketers including AT&T, GM and General Mills. However, Blip wants to start investing in new product and audience development in order to increase ad effectiveness and help content producers get more coverage.

Blip.tv CEO Mike Hudack told NewTeeVee, “We have a business model that works, and when you have a business model that works, you have to step on the gas and accelerate its growth. This [funding] will allow us to offer even more for our show producers, business partners and advertisers.”

This morning, Blip.tv announced their new mission on their blog:

“Our mission is to change entertainment by making independent show production scalable and profitable. Think about the music industry. There are more people making a living as musicians today than ever before in history. We believe that the same thing is happening in television. Soon there will be more people making a living as show producers than ever before in history…

“It’s our job to facilitate that change and accelerate it. And that’s what we’re going to be using our new funding for. To get to the point where there are more people making a living as show producers than ever before in history.”

It seems like Blip.tv is on the right track when it comes to growing and improving the company’s content and reach. Do you think they will reach their goal of becoming the go-to site for the distribution of web series, and the catalyst for a revolution in show production?