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Online Video Biz Seeks Ad Dollars
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If Internet video is finally becoming an actual business, wonders New York Times columnist Richard Siklos, how is it shaping up? In an article in the Times, "A Video Business Model Ready to Move Beyond Beta," Siklos delivers some salient facts about an ad-based revenue model for netcasters.
Perhaps the most powerful tidbit is that research firm eMarketer estimates video-related advertising will top $2.3 billion within four years. (By comparison, broadcast television rakes in about $46 billion.)
Siklos also tips a hat to
NBC's new web-syndication business NBBC
(National Broadband Company), which is counting on those ad dollars. Through
its many affiliates and corporate staying power, the NBC venture promises to
make money for content creators by connecting their videos with advertisers and
distributing them to a network of "heavily trafficked" websites.
Whether there's enough
advertising rolling around the web to support NBBC and the myriad video sites
popping up every day remains to be seen: In a recent story about the growth of
social networking websites (MySpace, et. al) in The
Economist, a media consulting firm big wig notes that advertisers
tend to get out of "the newest, least-proven forms of media first" –
is Internet video also vulnerable?
