Freepik buys the video library Videvo to establish itself as the great suite for creative professionals

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The first few months of the pandemic were times of tremendous economic uncertainty for many businesses, but not for Freepikwhich on its tenth anniversary achieved the exit by selling the Swedish fund EQT a majority stake for around 250 million euros. It was thus placed as the fourth major exit of a Spanish startup behind Ya.com, Privalia and AlienVault.

A couple of years after that, this startup from Malaga, already evolved into a company with all the letters, is one of the largest in the world in the graphic resources sector, and now is done with the British Videowhich will allow you to add more than half a million videos, audios and clips of motion graphics to his collection for an amount that has not been made public.

Videos and audios for a creative ecosystem

Freepik suffers from the same “problem” as companies like Facebook before the name change to Meta: its brand name matches that of its main product, but it has more. Something like this happens to this Andalusian company: it is known above all for its main product, of the same name, but it also has other products such as flat icona large bank of icons; Slidesgo, which offers slide templates; either Wepik, a simple business-oriented creative layout editor. Now this other Oxford company is added, which has 650,000 users, mainly from the United States, Canada, Australia and the United Kingdom.

Charles Marin

About this transaction, which puts Freepik in a better position to offer a complete ecosystem around resources for creative professionals, we spoke with Carlos Marinits director of strategy, who has told us about plans with Videvo: “We really liked it as a company because it has a very similar philosophy to ours, it was created with its own funds and it is very efficient. Our idea is to integrate Videvo at a technological level in our servers, browser, pricingetc to take advantage of economies of scale and we will continue to develop it in parallel at the same time that we put video in Freepik”. That is, keep the product independent but also integrate videos in the main product.

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There are some differences to cut around the monetization of both products, which have had very similar trajectories in that sense: they are products freemium who make money from subscriptions, advertising, and affiliate marketing. They want to remove these last two legs to focus on the first one. In the case of Videvo, subscriptions account for 60% of their income. On Freepik, 80%. The idea is that both end up reaching 100%. The era of subscriptions.

With Videvo you get video resources, but also audio ones, something that is due to the booming market of podcasting and, above all, to the great explosion of live broadcasts and the creation of content on platforms such as Twitch or TikTok.

Future plans

When we asked Carlos about plans for the future at Freepik, he comments on a possible future addition to the current catalog of services: “We are working on other lines that may not yet be as exploited, but through a lot of customization we will be able to add value. For example, the 3D, we think it will carry even more weight. It is something complex to work and create, and we will put the focus there to democratize it. We will also invest in fonts. And we will specialize in what we already have. For example, within the icons there are many verticals that we can reinforce, such as animated icons, interface icons for web pages…”.

Another question we ask the company is how it contemplates bundling its services to offer joint experiences instead of separate ones. There are plans on the way: “We are going to present it shortly, an integration of our assets under the main brand if it is for the same type of user and we see that it makes sense to unify. both in pricingmaking a bundling with discounts compared to separate purchases, like taking a step further. For example for educational profiles, other more creative ones, etc.”

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One of the unknowns of the creative sector for the coming years is how the arrival of Artificial Intelligence systems that can replace illustrators will affect their jobs and realities, at least to some extent. The most notorious cases in recent times are those of DALL-E 2 or its free and open access version, DALL-E Mini.

At Freepik they see a possible paradigm shift: “With AI there are certain types of assets that may not have as much value as before. With the advancement of technology we have to revalue. Before, for example, an ability to draw was prioritized, to transfer ideas to paper; now perhaps the part of copywritingthe ingenuity to request these illustrations from an artificial intelligence. We will also look for ways to improve. If something goes 90% right, we have the opportunity to make it 100% correct.”

While that moment arrives, Freepik consolidates itself from Malaga as one of the great global players in this sector and now also includes video and audio professionals.

The first few months of the pandemic were times of tremendous economic uncertainty for many businesses, but not for Freepikwhich…

The first few months of the pandemic were times of tremendous economic uncertainty for many businesses, but not for Freepikwhich…

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