Video network Movieclips channels Cher with popularity, cash, 4-letter name

Movieclips reeled in $18.5 million in its third round of financing today and is using the money to change its name to Zefr, among other things.

If Cher taught us anything, it was the power of four letter names. Smart move, team.

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Movieclips is a popular YouTube channel and content network. Users can browse and search through a large database of film scenes and trailers. They can also upload and share clips. The technology then identifies and claims the content, and tags it.

The company has partnerships with MGM, Paramount, Sony, Universal, Miramax, and Warner Brothers. While in many cases studios fight against piracy, they are willing to work with Movieclips.

The tagging facility gives advertisers targeted opportunities, which monetizes the video content. Once the technology matches the content to the studio, the revenue is directed the studio’s way. The studios receive increased page views and a payout as well as valuable data about their audience.

Viewers love it too. The content is licensed, high-quality, shareable, and free. As a result, the channel receives more than 600 million monthly views and has received more than 3 billion views total.

This impressive traction and viable business model paves the way for growth. The recent funding will be used to add more content categories, starting with television, music, and sports (hence the rebranding).

The round was led by U.S. Venture Partners, with participating from existing investors MK Capital, Shasta Ventures, SOftTech VC, First Round Capital, Richmond Park Partners, and others.

Zefr previously received $7 million in 2011 and $3 million in 2010. It is based in Venice, CA.