blip.tv "Best Video Site." But About Those Profits...

Mikehudack

New York’s blip.tv 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 blip.tv 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?
  • blip.tv 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.
  • blip.tv, popular though it is, has far less scale than Google.

So, we invite blip.tv 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: blip.tv’s Mike Hudack

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