The former chairman and chief executive of The Walt Disney Company, together with Time Warner, are among those investing in Veoh Networks, an online video start-up company based in San Diego.

Michael Eisner, who was deposed from the Disney empire last year, is taking an undisclosed stake in Veoh as part of a $12.5 million funding round. He will join the board of Veoh Networks, together with representatives of Spark Capital and Shelter Capital Partners, joining founder and chief executive Dmitry Shapiro.

“The World Wide Web allowed anyone to distribute print information, fundamentally changing the media industry through unprecedented choice and new business models. Veoh’s mission is to do the same for video and television content,” said the founder of Veoh Networks.

Veoh uses a proprietary peer-to-peer distribution system to deliver high quality video programming over the internet with the cost constraints associated with streaming video.

“Cable and satellite fundamentally changed the way television was distributed by creating the capacity for greater choice in programming. Veoh revolutionizes television again by leveraging the internet to expand broadcast capacity to the point that every single user, whether an individual or a media company, can create their own ‘channel’ and every ‘channel’ can be supported by its own business model,” said Michael Eisner. “In the past, distributing television programming required an enormous broadcast infrastructure. Veoh enables anyone with an internet connection to distribute and receive programming in the highest quality.”

Rachel Lam, responsible for Time Warner Investments, said that while video delivery over the internet is not a new concept, the ability to deliver long-form, high-definition programming and provide interactivity and community is an important differentiator. “Veoh’s unique combination of technologies creates a strategic content distribution platform as well as the opportunity to greatly enhance the consumer’s experience with Internet-delivered video,” he said. “We’re excited to be a part of that.”