The pros-to-web-video trend story is getting another workout at Business Week. The amateur auteur? “These days they’re not getting much love on the web,” Catherine Holahan reports.
The truth is that no one beyond YouTube has found a business model in amateur video; that’s why everyone from MySpace TV to Bebo to Veoh to Hulu are either commissioning original content, or trying to distribute TV shows online. Regardless of whether people like to watch KateModern or “fare such as skateboarding dogs and beer-drenched parties,” it’s the ad rates that count, and Holahan gets to that. Blinkx CEO Suranga Chandratillake says professional video can generate a $60 CPM (really?), while advertisers will only pay $7 for user-generated stuff. (This assumes they’ll pay for any ugc stuff – we’ve talked to at least one major video player who estimates that as much as 90% of their content won’t attract advertisers).
The question: Advertisers want professionally made stuff. What about the people who actually watch web video? “The user will still be on the playlist,” VideoEgg’s Matt Sanchez says. But “it will be 10% to 15% of consumption, not 60% of consumption.” He’d better hope his users comply with his prediction.
Business Insider Emails & Alerts
Site highlights each day to your inbox.