Vox Opens Video Studio in L.A., Prompting the Question: Are We Nearing Peak Video?

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Vox Media -- the digital publisher behind sites like The Verge, SB Nation and Vox.com -- has opened a department in Los Angeles aimed at making more digital video and, possibly, traditional TV.

As Vox Creative Director Chad Mumm told The Hollywood Reporter about the new Vox Entertainment:

Our approach is to become a programming company as much as an editorial company.

To that end, Vox recently signed with talent agency William Morris Endeavor to "represent the company's interests across television and film projects," Vox said in a statement Wednesday.

Of course, Vox Entertainment will work for marketers, too:

Vox Entertainment will also forge collaborations in conjunction with Vox Creative, Vox Media's in-house advertising division, and leading digital creators and talent to create innovative video-focused campaigns for Vox Media's brand partners.

Embracing video could be lucrative for Vox because advertisers typically pay higher rates for video ads than standard display units online. Vox generated $55 million in revenue last year, most of it from digital ad sales and creative services. In terms of profitability, the company was about break-even. So far, it's raised $110 million from investors.

But Vox also faces a maelstrom of competition from YouTube and Facebook, Vice and BuzzFeed, The New York Times and Conde Nast, and many more. Media companies old and new want a piece of digital video budgets, lured by those higher ad rates.

The NewFronts, where media companies pitch their digital wares to marketers and media buyers -- especially video -- have grown to accommodate them, swelling to 33 presenters this year from 20 presenters in 2014. (Vox, which wasn't a New Fronts presenter last year, will be this time.)

With so many companies plowing into the space, the media world might -- just might -- be nearing peak video.