In the past six months, the economy has forced at least a half-dozen online video studios to scale back production or shut down—but that’s not stopping a pair of movie industry vets from funding DCN Studios, a new digital entertainment studio that will develop original series and live-streamed events for college kids. David Salzberg, former president of Mandalay Sports Action Entertainment, and Christian Tureaud, former partner at HighRoad Entertainment, will serve as the studio’s co-presidents; paidContent has learned that their investment was in the “mid five-figure range.”

DCN Studios will distribute the content through the Georgia-based Digital College Network (DCN), an out-of-home entertainment company that pumps programming into around 250 university bookstores.

So why invest in new web-based studio in the middle of what appears to be a bursting bubble? The execs said it was because the distribution network and advertiser relationships were already there—DCN just needed the content. “They weren’t trying to figure out how to get on-campus, and they weren’t looking for the money,” Salzberg said. “They just had these unique ideas for creating content that they needed help executing.” DCN Studios will produce student-generated and premium online video.

Currently, the network reaches around 3.5 million college students; distribution points include LCD screens in bookstores, DCNLive.com, on-campus events (like a street team and promo bus during the Final Four) and a pending mobile app. Sponsors and partners have included Island Def Jam, CBSSports.com and ABC National Sales; the execs said a typical deal is in the mid six-figure range for a six month to year-long sponsorship. DCN Studios’ biggest challenger is Viacom’s mtvU, which reaches around 7.5 million students on over 750 campuses—and has the benefit of being able to pull in MTV content.

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