Sky Investment in Zeebox Confirms Rise of Mobile TV and Social-Based Applications

UK pay TV operator BSkyB has acquired 10 per cent of London-based social TV app provider Zeebox.

The deal, worth over £10m ($15m) according to Zeebox, follows an initial $7m funding round. The Zeebox social TV accompaniment app enables users to chat together and comment on live TV progammes, access additional media around TV content and view social media activity related to particular shows.

Zeebox first launched in October 2011 for iPad only and acquired over 250,000 users in its first eight weeks. The iPhone app launched in December 2011. The app is currently available for the PC via the browser and as a downloadable app for Apple's iOS devices (iPhone, iPad, iPod Touch).

At launch, Zeebox claimed its primary focus was on building its audience, with monetisation (primarily via advertising, but also through sponsored services, partnerships with content providers and the potential to sell user data) to follow. Initially only  available in the UK, Zeebox also has plans for international expansion.

As part of the deal, Sky gains the exclusive rights to integrate Zeebox's technology within its mobile app lineup. An updated version of Sky's popular Sky+ app (which offers remote PVR management and a TV guide) is expected first, with further implementations in Sky's range of smartphone and tablet apps to follow. Sky's in-house Sky Media ad-sales team will also sell advertising for Zeebox.

Zeebox is not the only social TV app provider to raise funding recently. The developer behind social TV app GetGlue (which counts 2m users) US-based AdaptiveBlue also closed a $12m round.  It had previously raised $6m in November 2010 from backers including Time Warner and raised $4.5m in a first funding round in 2008.