3. Exclusive: Cheddar to launch in AR on Magic Leap devices
Cheddar, the streaming news service for millennials, and Magic Leap, a mixed reality company, are teaming up to put Cheddar's two live news networks on Magic Leap One augmented reality devices.
Why it matters: These will be the first live news channels made available in mixed reality to all Magic Leap One owners.
The big picture: The move is part of a bigger trend of media companies pushing to try new forms of distribution.
- "Think about how many people are watching TV while also browsing something at the same time. I think this gives us a platform to potentially marry the two," says Cheddar's lead mobile engineer, Stephanie Lo.
Yes, but: The idea is meant to be a seed project that's being built far ahead of commercial applicability, mostly for buzz and experimentation. Magic Leap is only available now via a very pricey developer version, so the audience for the news channels will be small at first.
"In my three years running the company, I've always been focusing on generating revenue and getting carriage on big systems. I wanted to do one R&D project. I think a media company like us needs to have one long-term bet. A lot of other media companies can only see ahead to the next quarter. I'm trying to think a few years away."— Cheddar CEO and founder Jon Steinberg
Between the lines: Cheddar and Magic Leap share an investor in AT&T. Both companies focus on the future of content distribution.
By the numbers: Steinberg says Cheddar will bring in about $30 million in top-line revenue this year and will be profitable by the end of next year. "We'll lose $4 million roughly and as of today, after acquisitions, we have $30 million in bank, with a vast majority of that being in cash."