September 5, 2007
User-generated video is over
If you’ve been wondering how the online video business can support the hourly influx of new online studios, content creators and Internet video channels, then just follow the money. MediaPost reports.
Market research firm iSuppli predicted in June that professionally produced video will generate nearly $5.9 billion in revenues in 2011, up from $423 million in 2006.
That’s why venture capital firms are funding startup after startup at a dizzying speed, almost rubber-stamping anyone with a business plan for three- to eight-minute videos.
It’s also why companies such as Next New Networks, Vuguru, ON Networks, Revision3, Pixel Corps, 60Frames, Crackle and others are bumping against each other, jostling for elbow room.
Each one offers a slightly different twist to online production and financing, but they share a focus on finding, producing or showcasing top-tier Internet talent.
“User-generated is over,” says Josh Felser, co-president and founder of Crackle, the new name for Grouper, purchased by Sony last year. Crackle has shifted its business model away from user-generated content to focus exclusively on funding and producing “premium” Internet talent. "
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