YouTube - on the blink

Thursday, November 6. 2008

YouTube - on the blink

YouTube is going to show long form media - unsurprising, because despite the hype over User Generated Content, in the current Freeconomic plays there is no money in it. We are in the process of completing research on the future of online video distribution, and the in fact its Long Form media that makes a lot of money, and is predicted to carry on making it in future.

Video Traffic vs Revenues - From The Diffusion Group

This chart from The Diffusion Group shows the situation - on the left hand side the traffic streams, on the right hand the expected Ad revenues: Now, it may be possible to monetise UGC more, but right now Advertisers want to fund legal, high quality content.

Hulu and the BBC got there first (Olde Media companies, you will note), and have increasingly proven the long form Web TV model. Google risks $1.65bn of investment going down the toilet if they stay with the current model.

Hence YouTube's play - they've blinked.

Update - never mind blinked - they've gone in Eyes Wide Shut.... MGM to run a long form movie Web TV channel via YouTube

Posted by Alan Patrick in Web TV / IPTV / Online Video at 22:59 | Comment (1) | Trackbacks (0)

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Are those graphs normalised? Ad revenue per minute of content streamed is a more meaningful metric than ad revenue per asset (eg 30 UGC clip versus a 30 minute program).

#1 Benjamin (Homepage) on 2008-11-11 08:11 (Reply)

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