Last week Orange confirmed that it has entered into exclusive negotiation with Dailymotion – the French UGC Video portal and YouTube competitor – with a view to acquiring a 49% stake in its capital for 59 million Euros. Beginning in 2013, the project allows Orange a progressive capital increase to 100% and also allows for the integration of new business partners. The signature of the final agreement should be reached in the coming months that will enable both parties to optimize their video services and enrich their respective offers.
Commenting on the deal, CEO of France Telecom-Orange Stéphane Richard said that “Our role is to support our customers in this digital revolution - we would like to bring them into the 'Cloud Video’ world where Dailymotion is a major player.”
Thus we thought it might be interesting to take a closer look at Dailymotion users from our recent Digital Media survey and here are some of the results:
As the graph above shows, Dailymotion primarily attracts French Internet users but some traction exists in other major region as well. The deal with orange will likely help Daiylymotion build international presence by leveraging Orange’s large international footprint.
When comparing Dailymotion users to YouTube users, it becomes clear that Dailymotion I more skewed towards younger age groups. A seen in the graph below, the majority (62%) of Dailymotion users are under 35 years old while the majority (52%) of YouTube users are actually 35 years or older.
Thus, Dailymotion may be able to help Orange attract younger age groups by its brand affiliation. Perhaps more interesting though is that Stéphane Richard’s comment about “Cloud Video” and the strategic implication for Orange. With the acquisition of Dailymotion, Orange will join Telefonica as two of the few major telecom operators in the world that operates standalone over-the-top video portals (Telefonica owns and operates Terra TV in Latin America and Europe). As OTT video becomes an increasing part of how consumers access video content, more moves into cloud video by major telecom operators is to be expected.