William Gorog should be worried. Gorog is the CEO of Napster and their direct competitor, Ruckus Network just raised $10 million in funding. This is Ruckus’ second round of investment and the funding was led by Anschutz Investment Company LLC and Columbia Capital.
Ruckus’ membership grew 60% during the Spring 2007 semester and signed contracts with 40 new schools. Currently the company has 120 memberships. Ruckus service is exclusive to those who have a .edu e-mail address.
“Today’s funding announcement caps what is arguably the most significant, successful and exciting period to date for Ruckus,“ stated Mike Bebel, the CEO of Ruckus Network, Inc. “Ruckus has become the digital entertainment service of choice for college students and administrators alike, creating considerable interest among advertisers and marketers who recognize the vast potential Ruckus fulfills. With this investment round, we are poised for even greater growth.“
Ruckus established partnerships with OneNet and Merit, who are the Internet Service Providers for educational institutions Michigan, Michigan State University, Wayne State University, Western Michigan University, etc.
The new funding will be used to develop further advertisement partnerships. Ruckus also provides full length movies for streaming.