The Massive World of Online Video Content

Video is exploding on the web, from user-generated sites like YouTube and Current TVto corporate media owned content like primetime television programming from ABC, NBC, and CBS. In terms of expectations, these sites have changed the way we think about video. We can no longer expect a certain level of quality just because a video has been published and we cannot rely on traditional outlets to provide the same tight regulations on copyrighted content as they would with other outlets. In essence, user-generated content is a wild beast that needs to be tamed.

One of the most interesting trends emerging from video-specific sites like YouTube, though, is that user generated content is the driving force for the business. Site traffic is less dependent on good content posted by the web host than it is on the average user posting popular content. In some ways, it removes responsibility from the web host to have to find new and interesting content to post. With that freedom comes great responsibility, though. From regulating potentially offensive content to removing copyrighted material, the people who maintain user-generated video content are up against the clock. 

The Monetization of Online Video: Naysayer - vs - Proponent

Most businesses are realizing that multimedia content, like video, on their sites is necessary for maintaining a technological edge while providing visitors with something entertaining and return worthy.

Media Post writer Jaffer Ali doesn’t think that major advertisers will be interested in tapping into the purchasing power of user-generated content directly, stating that, “major brands will never embrace pre-roll advertising in front of all user-generated content and risk being linked to college kids applying a match to their breaking wind.” Apparently, this naysayer hasn’t taken the time to read the eMarketer estimate of annual online video ad spending rising to close to three billion dollars by 2010. Even though companies may not want to risk copyright infringement by steering clear of user-generated content, they are certainly embracing the concept of these sites as they exist, as demonstrated by the recent Google purchase of YouTube for $1.65 billion.

MACRO: When the Giants Get Involved

The New York Times reported this week that two industry leaders on the web are in discussion with local video sites for potential buyouts. “However, neither Internet giant has secured a specific target yet, said the sources with knowledge of the situation.” Major media corporations like, “NBC Universal, the News Corporation, Viacom, and possibly CBS are close to announcing a new Web site that will feature some of their best-known television programming and other clips in an attempt to build a business for distributing video on the Internet to rival YouTube. The new business could be announced as soon as this week,” reported Richard Siklos and Bill Carter of The New York Times.

MICRO: Integrating Online Video Onto Your Own Site

As a self-contained identity and as a business venture, YouTube is certainly not a lucrative project thus far. In fact, they have paid more in bandwidth than advertising dollars could ever match. So, perhaps starting your own user-generated video site is not the way to go, but well organized, relevant video content on your site will enhance your mission and help increase the number of return visitors. Update video content fairly regularly depending on what type of business you have on the web. If you are not a video-based business, you only need to update with a new video every week. Set up an RSS feed so that partners can have immediate updates after new content is added. Flex that creative muscle and increase your ability to lure and keep users on your site. More importantly, this will be a good starting point for you to see if a piece of the pie in this multibillion dollar online video business is waiting for you.