Seattle kids video streaming service startup Magicflix has raised $500,000 in financing.
The angel investment comes from entrepreneurs Geoff Entress and Andrew Wright and will help the company develop apps and acquire content, says Magicflix CEO Mamtha Banerjee.
Banerjee tells StreamDaily the investors chose Magicflix because “they agreed we had identified a key need in the market…We want to create a safe, fun and fantastic video-on- demand service for kids.”
Launched in November 2014, Magicflix is an age-appropriate, ad-free service available by subscription only for $4.99 monthly.
“Our business model is appealing because the market has already proven that it works,” Banerjee continues. “All you have to do is look at Netflix or HuluPlus or even cable TV to see that consumers are willing to pay reasonable subscription fees for on-demand video that fills a need.”
Magicflix has its work cut out for it, since it’s entering a highly competitive field that has companies like SpindoTV and Kidoodle.tv to YouTube and Hulu to contend with.
As far as app development goes, Banerjee says Magicflix is only working on its core Magicflix app at the moment.
Magicflix currently offers a selection of more than 1,500 videos and its content partners include The Okee Dokee Brothers, Eric Herman, L’il Rhody and many others.
Screenshot from Magicflix website.