VideoYesterday, I attended an open house at Google's offices in New York. Heads from several department spoke. The most interesting quote, I thought, came from David Eun, Vice President of Content Partnerships, who said,
We are only in the first minute of the 24 hours of Internet video.I later relayed this to Ricky, who kidded, "That's gotta sound a lot more comforting to them than, 'Well, looks like we lost to YouTube!'"
But, I think Eun is right on. We haven't seen it all. And, I appreciate the optimism in contrast to Om Malik's recent article in Business 2.0, The coming Web video shakeout, who posed the question, "Who will survive?" I agree that most of the current 173 video-sharing sites won't make it past 2006, but I don't think this means YouTube won, or rather that there won't be an alternative to dethrone PooTube (as we like to call it in the office). Most of these 173 will fail because they're simply unimaginative fronts for hosting companies, who think they can make a business model out of trying to give away more bandwidth than YouTube.
I suspect the better ideas will surface once in-video advertising becomes massively tolerable by users. Interestingly, YouTube has critical mass so they could single-handedly change common sensitivity to video ads, but by doing so they will make it even more acceptable for their competitors to introduce ads to their content. Then, good ideas currently without a scalable business model will have a new revenue possibility.
This is going to get really exciting.
Aside, if I were a recent college grad without a job -- I would startup a venture that produces 5/15/30 second ad spots for small to medium-sized companies. If popular video-sharing sites begin including pre-roll advertising before clips, there is going to be lots of new ad inventory, and lots of new advertisers who don't have video creatives.
I have said this EXACT same thing a bunch of times about producing web spots. There's going to be a huge market for this stuff... and so few of what I see now is engaging. Lots of repurposed TV spots... ugh. Thanks for coming last night.
Chris Kalani said...
Google video is only cool because of their download features... like for the iPod and the psp... why can't YouTube have that!! I would still totally support YT if it had ads.. they just better keep them short enough.
A gentle introduction…
You may have an interest in noting the availability of the StreamerNet Mobile Video Producer for creating and delivering do-it-yourself video ads.
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Hi, I'm Zach. I grew up in Fort Wayne, Indiana and graduated from Wake Forest. After college, I moved to Manhattan to get serious about a company I ran with friends. We sold it to Barry Diller's InterActiveCorp in 2006. I just wrapped up with a project I co-founded called Vimeo and left CV to focus on being a twenty-five year old.
I have another blog called Copy and Taste, where I post about learning to cook.
I live in Brooklyn now.
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