Why Google Invested Millions Into Machinima

In the event that you are living under a rock near the earth’s core, you probably have not heard the news. Machinima is rich. The multi-media and geek culture inspired network recently received funding from Google and additional investors totaling $35 million. It’s reported that Google is making the majority of the investment, with Redpoint Ventures and MK Capital chipping in as well.

Google investing in Machinima is a testament to the studio’s ability to engage a web audience with a specific brand of content. Machinima alone has 3.3 billion views on YouTube and that does not account for the additional channels across their network. Massive amounts of subscribers and views are a great selling point for Machinima. But Google’s ample investment is due to much more than clicks and views.

The bottom line for Google is capitalizing through advertisements and engagement. ReelSeo.com reported that in April, the average person visiting Machinima’s YouTube channel stayed on the page for 65 minutes. Turning a profit on the Web comes down to much more than getting people to your channel or site, it is also about keeping them there. More time spent on a channel means more opportunities for advertising, multiple times. It is obvious that Machinima is conscious of this fact and knows the formula to keeping eyes on their channel.

In addition to keeping audiences fixed on their channel, Machinima has tapped into a combination demographic of video game enthusiasts and Web junkies. As of 2011 72 percent of American households play video games with eighty-two percent of those gamers being 18 years or older. The one-two punch from Machinima comes from that fact that 91 percent of online video viewers are between the ages of 18 and 34.  That is over 70 percent of Americans and 91 percent of Internet users who Machinima is directly appealing to with their brand of video game themed content.

If these numbers continue to trend towards a younger Internet audience, by 2015, 90 percent of those 18-34 year old users will be on the Internet watching online video. With Machinima also releasing the web series, Halo: Forward Unto Dawn (side note, best title ever) in conjunction with the release of the highly anticipated Halo 4 video game, the site is looking to bring in an even larger audience. Previous Halo title, Halo: Reach sold 8.98 million copies worldwide. If Halo 4 has any amount of success similar to Halo: Reach (it will), then Machinima’s tie-in will quickly make the new media pioneers a household name. Good on you Machinima.

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