Profitable Frames: How to Monetize Online Video
Sunday, 07.10.2007
According to BBC Online watching video on the Internet replaces watching TV for many individuals. 43% of those, who watch video online or via mobile devices at least once a week, stated that they watch TV more seldom because of this.
It is impossible to deny that Internet video is one of the most promising commercial phenomena. Taking into account the popularity and huge audience of video-sharing sites and IP-television, it is obvious, that money lies here. The Western market specialists feel it taste and pay record sums for video services. For example, Google corporation paid $1.6 billion for YouTube. But at the same time it is not quite obvious how to monetize Internet video and turn popularity into money. In spite of some pessimism and scepsis, there are a number of successful business-models for Internet video projects.
Advertising is the engine of progress.
Huge audiences attracted to the video invokes the though that advertising is one of the obvious means of profit. There are a number of variants: from adds on the sites where video is to the integration of advertisement into the video itself. A number of sites work like that, some of them even share profit with the authors of the content.
Moreover one shouldn’t forget about the growing popularity of Internet-TV and P2P video services. The tendency is that the audience of TV channels goes online and the company who is the first to develop the area will be the winner of the market.
Virus video
The industry of virus video has earned $100-150 million in the US last year. The major peculiarity of virus video is its humor. The video must be humorous, if the people laugh, it will be successful. In this case one has to just sit, wait and register incredible growth of the popularity of the site which is given at the end of the video.
It goes without saying that virus video cannot advertise everything. First of all, there are products targeted at very narrow audience, secondly, there are products or services which do not allow humor in advertising (medical sphere, for instance), and lastly, there are brands which forms its image too elaborately to use virus video.
The variety of ways
Another variant of video business-models is the selling of video content, which works in the area of porno industry. However, a number of respectable companies make profit of this kind selling licensed movies and TV-shows via the Internet.
Recently almost all the huge sites create video subdivisions as an additional service for entertaining and attracting the users. If a site don’t have the appropriate resources and abilities, that use the service of Brightcove.com and VideoEgg.com. The latter provide video translating technology and the mechanisms of monetization.
The perspective
At the moment it is obvious that a lot of video services are made for selling to the individuals who believe in monetization of the Internet video. However, the number of optimists is growing rapidly. The optimism is based on two major factors: The number of Internet users with wideband access and the popularity of social networks and services.
In the Internet, a great number of users is turned into money as a rule. It means that it is just a matter of time, when the wayы to monetize video services effectively will be invented.
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A few days earlier the companies