Online Advertisers Shun User-Generated Video
According to a study by media analysis firm Screen Digest, Web sites such as MySpace and YouTube will earn only a fraction of the advertising budgets available for more professional online programming.
“No single user-generated [video] site has really instilled a business model yet,” said Arash Amel, Screen Digest’s senior analyst. “The business model for user-generated sites has been ‘build it and sell it and let someone else worry about the business model’.”
With the recent shakeups at Revver and Guba it seems that the “someone else” has definitely been worrying about the business model. The question then becomes, why is user-generated video so hard to monetize? Didn’t Google just pay $1.65 Billion for YouTube?
Peter Chernin, News Corp president said at a recent conference: “We do not see big advertisers advertising with YouTube or MySpace. They have concerns about the content ... and there is no scarcity value for the content ... so there is very little ability to monetise video advertising on user-generated video.”
Now it all makes sense. Who knew that advertisers wouldn’t enjoy watching people’s cats dancing on tables as much as the rest of us?
The trackback URL for this entry is:
Trackbacks:
Comments:
Next entry: How large is large in TV 2.0?
Previous entry: The Apple iPhone Tail is now wagging the Cingular/AT&T Dog
