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Friday, September 08, 2006

YouTube & Hackneyed Revenue Potential Talk

Fred started a discussion today around the value of YouTube and strategies to monetize online video. He thinks that YouTube could be generating $440 million in annual revenue after factoring the effects of unwanted content and user generated high quality content. I think all this is totally theoretical – many of the content in sites like Youtube are so non viewable grade for common users, the volume projections look so bizarre. I think probably less than ten percent of videos may appeal to all – its like a search engine – practically results appearing after page 6 may not get much visitors. It was wonder when i read that YouTube is waiting for the payoff.
I somehow think that all these big numbers may not matter much at all as we can not extrapolate existing revenue models to near disruptive technologies like Youtube. Clearly yesteryears models of monetization may not be fully relevant when the media business embraces new waves of business. It also needs to be seen how much one be willing to pay for one way ads – adsense makes money because of its dynamic nature of generating relevant ads. I agree with this perspective on the way forward for Youtube.
I just want to repeat what I wrote about another passing fancy – rocketboom wherein I noted that while the bullishness is based on user generated content and it associated premium value, I am not too enthused about user generated content itself given the proliferation of electronic media and rendering devices. If Rocketboom were to work on creating heppy quality content, then they are in an head-on collision with the traditional media – far more resourceful and showing signs of great dynamism and it they are just going to rely on user generated content, once can’t escape the fact that reality will dawn upon them as is happening with the likes of youtube. The hyped up Skype’s, Flickr’s provide ample lessons. A look at the way the posterboy of internet era - Amazon & its stock movement tells it all. Interestingly Amazon is entering somewhat related line of business that YouTube is currently in.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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