“Best Video Site.” But About Those Profits…


New York’s just whipped YouTube and a cast of thousands of other video-sharing sites in a PC World industry review (By the way, when we say “cast of thousands,” we mean it: any entrepreneur thinking of starting a video company–or, worse, running one–should check out this list).  That’s not bad for a company with 10 employees, especially given the competition.  PC World’s review here.

This is great news, but we have a question: How will ever make money?  We don’t mean to rain on the parade, but here’s the picture we’re looking at:

  • Google’s YouTube is selling video ads for about a $20 CPM.  Blip presumably can’t charge that much more than Google–can it?
  • shares half of its gross revenue with producers, leaving it with a $10 CPM
  • Hosting and serving videos and video ads costs a boatload of money.
  • Ad sales people cost a boatload of money
  • Google’s AdSense, a similar third-party-content-monetizing service, has awesome scale and very low margins–and it doesn’t pay to host and stream the content. Also AdSense serves ultra-cheap text-based ads, some of which generate a far higher CPM.
  •, popular though it is, has far less scale than Google.

So, we invite to weigh in.  Mike Hudack?  Dina Kaplan?  How are you going to make money?

Also see:
Companies that Are Cool and Companies that Suck
Interview Bites:’s Mike Hudack