Media streamer Plex has raised a significant amount of new capital, further fueling its push towards profitability. The company, which has undergone significant changes over the years, has transformed itself from a software platform used by consumers to organize their home media collections into a one-stop shop for all media needs.
A New Round of Funding
The exact size of the funding round was initially reported to be larger than Plex’s $50 million growth round closed a few years ago. However, a representative for Plex has confirmed that the new round is actually worth $40 million. The funds will be used to drive the company’s push towards profitability, which is expected by year-end or just after.
A Valuation on Hold
Plex CEO Keith Valory confirmed that the funding round closed this month but declined to disclose Plex’s new valuation. While Valory joked about being a "unicorn," the company’s real-world valuation remains unknown as it hasn’t raised outside funds in some time, preferring instead to work with its existing set of investors.
An Inside Round
The new investment is an inside round that includes existing Series C investors — lead investor Intercap and Kleiner Perkins. The size of the round will later be disclosed through securities filings.
"We have the most supportive investors of any," Valory said. "I feel like funding has never been a concern of ours." This sentiment highlights Plex’s strong relationships with its investors, which is essential for the company’s continued growth and success.
A Transformative Journey
Plex’s journey over the years has been nothing short of remarkable. From its humble beginnings as a media organization startup to becoming a one-stop shop for all media needs, the company has undergone significant changes. Today, Plex users can watch free, ad-supported shows and movies, listen to music, stream live TV channels or their own media, and more.
New Features on the Horizon
Recently, the company has been developing social features, allowing Plex users to opt into a feature that tracks their viewing and shares it with friends. This feature will be further developed over the course of the year, with plans to expand community capabilities for both content owners and users through the use of public pages.
Another planned feature is the forthcoming launch of Plex’s TVOD marketplace — an online storefront that will allow users to rent shows and movies from top studios.
Ad-Supported Streaming Drives Growth
To date, it’s Plex’s ad-supported streaming that has been driving its revenue growth. Although Plex was impacted by the market downturn, leading to layoffs, the company’s ad revenue grew by nearly 45% in 2023, with overall business growth reaching 30%. Engagement and usage have also been growing steadily.
A Leader in the Market
Plex is confident that it has a unique perspective from a data standpoint due to its ability to track users’ media consumption. With this valuable information, the company can provide targeted advertising, further driving revenue growth.
"We are proud of our position as a leader in the market," Valory said. "Our commitment to innovation and customer satisfaction is unwavering."
A Path Towards Profitability
Plex’s new funding round will undoubtedly help drive its push towards profitability by year-end or just after. With its strong relationships with investors, innovative approach to media streaming, and focus on customer satisfaction, the company is well-positioned for continued growth and success.
As Plex continues on its transformative journey, one thing is clear: the future of media streaming has never looked brighter.
