KIT Digital, the recently rebranded online video provider formerly known as ROO has its issues. But the recent influx of funding will keep them afloat, and an increased focus on the international marketplace is a smart move.

“All of our markets have competition, often less evolved than in the U.S.” KIT Digital CEO Kaleil Isaza Tuzman told NTV today “In the U.S., or North America, there are so many VC-backed companies that are willing to do business at a loss.”

ROO themselves operated at a loss for some time, having leveraged themselves to the hilt before the bailout from Dubai. But by shifting focus away from technology - which never was their strong point - to focus on building a global cross-platform presence, they may at last find a profitable model.

The international marketplace for online video is by and large less developed than in the U.S., and exporting business models proven successful in the U.S. to international locations is in itself a potentially lucrative market. The recently closed acquisition of Kamera provides mobile reach, new content partners and increased global exposure.

Tuzman’s focus on cash flow, streamlining the business by shutting down non-revenue units (see Wurld Media) and eliminating unsuccessful partnerships is a big step in the right direction. If KIT Digital can build on their existing relationships and offer partners a better way to make money in new markets and platforms, they will have found the competitive advantage they have pursued for so long.

That said, recent events have only bought them time. The stock is still in the toilet, and unless they start making money fast it will all have been for nothing.

Worthy of a quick Friday morning hit, the company formerly known as Roo has announced their first deal since their latest restructuring and renaming. In sticking with their (former?) hometown roots, KIT digital inked a three-year agreement with Sensis, an Australian online information resource company that publishes the Australian version of the Yellow Pages.

The announcement could be responsible for the stock’s near doubling earlier this week, climbing as high as $.47 before settling back down into the mid to high $.30 cent range.