Super-indies as online video VCs

More investment opportunities are appearing for the UK online TV and video production scene. Only yesterday, we blogged about the potential for US investors to be major funders for British online television production.

And today, it’s announced that Endemol’s digital fund is taking a 40 per cent stake in Pure Grass Films, which produced Beyond The Rave, the Sadie Frost horror movie commissioned by MySpace TV and Hammer Films (via PaidContent UK).

By contrast with the US model, where VCs directly back new studios to make online television shows, a key model in the UK is very likely to be big investors entering via existing super-indies, such as Endemol.

Endemol itself is owned by Goldman Sachs Capital Partners, Silvio Berlusconi’s Mediaset Group and Cyrte Group.

The advantages on both sides are considerable. Pure Grass gains not only an investor, but one with considerable online television experience, both in production (Endemol has recently produced Signs of Life and Upstaged for the BBC) and also in people – new Pure Grass board member Peter Cowley has in-depth experience of interactive television in all its forms since the 1990s. For the investors, the risks are greatly offset by aligning Pure Grass with an existing and successful operation such as Endemol.

Will super-indies be the main supporters of UK online video and television? Or will it be the Americans?

With more sources of investment competing, it’s looking like a good time to start up in online video production.