Video streaming startup Struum raises $7M to build a cable bundle for the streaming era and lets viewers access 1000s of movies from 60+ niche services for $4.99 a month
Today, the online video streaming landscape is dominated by larger subscription services like Netflix, YouTube, Disney+, Peacock, Hulu, Amazon Prime Video, Apple TV+, and HBO Max.Together, these subscription services account for a 75% share of the total streaming market while the remaining 25% represent the niche streaming services, according to Nielsen.
So how can niche streaming services compete with the likes of Netflix, Disney+, and YouTube? That’s where Struum comes in. Struum is a new streaming service founded by former Disney and Discovery executives to aggregate content from smaller video services then provide access under its own subscription. Unlike the traditional on-demand streaming services, such as Netflix, Struum offers users a way to watch shows from different services without having to subscribe to each one a la carte.
Today, Struum announced it has raised $7 million in Series A funding to grow its content library, enhance its technology and expand the service outside the United States, Struum CEO Lauren DeVillier said. The funding came from a group of investors led by Canadian media company Corus Entertainment.
Struum also attracted early backing from former Disney CEO Michael Eisner through his Tornante Company. Eisner said the idea behind Struum resonated with him. “Not only is aggregation the right idea,” said Eisner. “But the way they’re thinking of aggregating to me makes sense.”
Similar to ClassPass but for streaming, Struum subscribers pay $4.99 a month to access 1000s of movies and TV shows from over 60+ services from over 50 niche streaming players for just a $4.99 monthly subscription.
Here is how it works. Struum subscribers receive a fixed number of monthly credits which they redeem to watch shows, choosing from an eclectic mix of content, from BBC Select to Tastemade’s cooking shows and the BBC Select’s documentaries.
“The credit-based sampling model is a proven model,” said Corus CEO Doug Murphy. “So when I first got wind of it … I thought, ‘Well, this is a lay-up.’ It solves a market need.”
In May, Struum launched a preview on Apple phones and tablets and gained tens of thousands of installs. At the same time, it is broadening distribution to Android devices, as well as to the living room, via Roku, Amazon Fire TV, and Apple TV. The company expects to launch its service in Canada in 2020.