While many online video creators see the Internet as a stepping stone to television, Metacafe is convincing them it has an entertainment platform that will provide some video creators six-figure incomes in 2007. Metacafe, the most popular independent video site, pays creators $5.00 for every 1,000 views. The site's top earner, ReelStunts, has earned more than $25,000 from one video that features an individual doing acrobatic stunts.

"Online video is the most misunderstood format of entertainment in the world," said Arik Czerniak, CEO of Metacafe. "We have to turn it into a real business or else it will appeal only to hobbyists or those looking to transition to a bigger format."

Czerniak says the industry is experiencing a shift from "user generated content" to "user-licensed content." Metacafe currently offers one "license scheme," but is considering providing increased advertising revenue in exchange for some level of exclusivity. "Imagine a world where anyone with quality content can become an Internet star and make a living," Czerniak says.

Metacafe is the most popular online destination you've never heard of. Google recently reported that "Metacafe" was the fourth-most searched-for term in 2006 – outranking words like "wikipedia" and "video." Google's list does not reflect search volume, but lift in total searches on a keyword relative to 2005. "Being part of the Google zeitgeist speaks volumes about how people view Metacafe," says Czerniak. "We have become synonymous with entertaining video in the same way that MySpace, which also appears on the list, is a recognized leader in social networking."

Metacafe – which began in 2003 as peer-to-peer tool – is headquarters are in Palo Alto, California, and employs 60 people there and in Tel Aviv. Hitwise and ComScore data offer conflicting rankings of online video sites, but Czerniak says Metacafe draws more than 20 million viewers a month. That makes his site more popular than Yahoo Video, who is rumored to be in talks to acquire Metacafe. YNet News reported recently that Metacafe was in advanced stages of negotiations for selling company for an estimated price of $200 million. TechCrunch speculated that the price tag would be between $200-$300 million, and that a potential buyer could be Yahoo. Czerniak would not comment on the rumors.

“Metacafe is an online entertainment destination, not a video sharing site,” said Arik Czerniak. “We use a review community and proprietary technology to surface and serve great content that viewers want to watch. Every clip on our front page is there because it is genuinely popular and engaging.” A featured video on Metacafe survives only if it is ranked highly by the last several hundred people that rank it. Czerniak says that's how Metacafe avoids having top videos that get "stuck" on top like those "most viewed" on YouTube.

Czerniak says Metacafe will soon give its video producers social-networking tools to blog and build community within their channel. It is currently working on distribution deals abroad and within the United States, which represents less than half of its audience. Metacafe also announced a strategic partnership with Hollywood producer Steven Bochco, whose numerous television successes include Hill Street Blues, NYPD Blue and LA Law.