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Think Big. Move Fast.

Well we were hoping not to announce our investment in Flixster until they got a PR firm engaged, but Mike Arrington at Techcrunch has his sources and broke the news tonight.

We’re very excited to partner with Joe and Saran (the two founders) and the rest of the team. They have built an amazing user generated content site around movies, including ratings, reviews, actor pages, trivia quizes, movie compatability tests and tons of other stuff. Traffic growth has been truly viral and the site has grown from nothing a year ago to very meaningful pageviews per month from users all over the world. They’ve done a great job of applying social networking and viral best practices to engineer this growth.

As we’ve posted in the past, we’re big believers that this year social networking becomes a feature, a mechanism used to incent users to create content that will be of broad interest to many other users. We think that this is most interesting around verticals with endemic advertising opportunities. Web based advertisers still pay a premium for content related to their product (vs buying demographics or broad reach). As movie studios follow their audiences online they will be marketing more on the web, and movie related content will continue to draw premium CPMs, just as it does for Moviefone, Yahoo Movies, etc. Flixster fits right into this model.

  • Lance

    Jeremy,

    Congrats on the investment! No question its a great move and Flixster looks to be in a solid position with the growth which has occured there. Likewise, I couldn’t agree more with the nature of endemic advertising opportunities which niche environments like this create. It should prove to be a valuable commodity for advertisers wishing to capture attention of the demographics there versus risking advertising placements on the likes of MySpace or other portal properties. And its not as if advertising budgets for movies are shrinking these days….

  • http://www.leehower.com Lee

    Congrats Jeremy. Flixster has indeed had dramatic growth and Joe is a great guy (friend from both college and after when we both ended up in the bay area).

  • http://claycook.minti.com Clay Cook

    Jeremy

    Great news, well done to you and flixster.
    You most likely didn’t rely on the Alexa stats etc for true traffic trends?
    We have found that it is highly inaccurate and has Minti pointing down when in fact it continues to grow month on month…

    Cheers
    Clay

  • http://lsvp.wordpress.com jeremyliew

    Clay,

    Alexa is usually directionally correct and its free so it can be linked to and anyone can see the #s. Compete, Hitwise and Comscore are all behind pay walls

    J

  • http://claycook.minti.com Clay Cook

    Jeremy,

    I understand what you are saying, just so your readers don’t put all their faith in Alexa… our experience is unfortunately that it has been directionally incorrect compared to our true stats. It’s not really a problem for us as we can see our true stats, but I guess people using Alexa and Compete will get the wrong idea about our traffic trend.

    Cheers
    Clay

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