Video competition

At Yahoo's analyst day, Jeff Weiner - head of Yahoo's search initiatives - said the search giant would have some new product/service launches in a couple weeks. While he didn't say that a user-generated video upload service would be one of those services, that type of product seems to fit right in with Yahoo's other offerings. My guess is that it's coming soon. The challenge for Yahoo is to making it different from what's already out there.

I recently was alerted to 88Slide.com. It's a site - or should I say channel - that airs one-minute video trivias. Founder Noah Bonnett told me he was inspired by Rocketboom, a daily 3-minute news show.  Bonnett hopes to give advertisers consistent short-form content to sponsor. Bonnett - who shoots the video himself - has already attracted some sponsors. It doesn't surprise me. Advertisers are seeking short-form content that's predictable and reliable.

There is also Purevideo, backed by angel investor Ron Conway. Purevideo owns stupidvideos.com and is in the process of creating other video channels. Vmix is yet another video site hoping to build Internet channels. Booyah Networks (not affiliated with CNBC host James Cramer) is one of the more interesting private-label video services because of its auction-based advertising model. Essentially, Booyah has technology to automate the bidding process for pre-roll or post-roll ads. Think - AdWords for video. Among the other emerging video channels or video aggregators I've come across besides Google Video, YouTube, Grouper, MySpace videos and Akimbo, are Current.tv, Pixsy.com, Dailymotion.com, Metacafe.com, Vidilife.com, Guba.com, and eBaumsworld.com. There's also Ourmedia.org, Veoh.com, Podzinger.com, Break.com, Tagworld.com, Gorillamask.net, Fireant.tv, Dailysixer.com, iFilm.com, Sloopy.com, Atom Film (and AddictingClips), Extremefunnyhumor.com, Dinkytv.com, Stupidvideos.com, GrindTV.com, Comegetyousome.com, Ripetv.com and Livedigital.com.

Who will be the stars of this online video medium? I'm sure they'll arise in no time.  After all, the infrastructure for viewing video online is practically in place. Sadly, I'm sure some of these budding channels won't survive.

Comments

[Matthew Cook]

The Great Race for Internet Video Shelf Space!

So how do we breakdown these new video portals…

Aggregators (All content)

Professionally Produced Content

Studios and Networks -- Scripted and Non Scripted content.

- New original TV shows and Feature length movies
- Studio Library Content – Movies and TV shows

New original “made for Internet” content – e.g., Rocketboom etc.

Note: More and more aggregators are adding User Generated Content

Revenue model: Ad supported, Pay per view or subscription VOD

>>>>>

User Generated Content (UGC) Aggregators

Every kind of content

Revenue model: Most are using Ad supported and some are offering an ad revenue split.

>>>>>

Pure Pay Per View or Subscription Aggregators

Music Videos, Movie, TV, Sports, How to videos, Educational videos

Mainly Music Videos, Special Event Sports and Porn

Note: iTunes (Music seller first) is and will morph in all directions, i.e., New release movies to UGC – ad supported to PPV.

Revenue model: Pay per View, Subscription, Free VOD up sell to PPV version, Ad Supported VOD

>>>>>

New Internet / Online Networks – Online Broadcasting

Original content “made for Internet”

Right now the content is inexpensive cinema verite and news shows aimed at the 18-34 year old male. OK, showing hot women in swim suits and lighting your kid brother on fire and throwing him the swimming pool kind of stuff.

Re-packaging TV and DVD/VHS content for the Internet.

And a mix of “all of the above”.

Revenue model: Mainly Ad Supported

Note: I think these Networks will morph into subscription and PPV… the classic play will be to offer free VOD and up sell the main content to the end user.

These might become a new version of Cable Networks. IPTV et al. is a cheaper way into the living room.

>>>>>>

There are some more subsets and you have to include the “boxes” like Tivo and Akimbo as other video Aggregators

What will happen… the shakeout…?

Some of the high traffic Video Portals can mix and match whatever format(s) they want.
Because they can. They will follow whatever model turns into a positive revenue stream. iTunes might become the Amazon.com of the Internet for video. Others are going to have to fight for traffic.

Example: YouTube can morph into a major video aggregator of all content formats due to its traffic and demo. Others are going to have to “narrow cast”.

Pure content aggregators are in trouble unless they have original content or have a direct connection to the end user like Tivo.

They are going to lose their access to Network and Studio content.

The major TV Networks and Studios have already learned and have proven that they can “online” broadcast on their own. Look at ABC and CBS… at one point they will pull all content going to video aggregators and make you come exclusively to them. I believe there will be some “syndicating” but it will be to major traffic sites like iTunes, Yahoo and Google.

If encryption does not improve to the standards set by the Majors they will hold on to their content. Once the majors are more comfortable with better encryption systems they will broaden the distribution landscape. Once that happens we should see less Streaming and more “download to own” VOD options.

At what point do the User Generated sites lose momentum…

How long will aspiring filmmakers give free content away… especially with a site like revver.com splitting the ad revenue. Aspiring filmmakers and Junior Spielberg’s are going to start doing the math.

What will motivate them…money or fame?

Internet TV Networks or Online Broadcasting…

I think the new Internet Networks are in the best place…

Their advantage is original content. Professional content made for Internet. They can push content in both directions – up the food chain to TV screens and Cable VOD channels and down to mobile devices. They own the copyright. No fees to the Studios.

They can always aggregate all forms of content and with major ad sponsors and multiple platform distribution channels they can offer UGC producers the best added value.

Excusive Content: You can’t get it on over-the-air / cable TV or view it on other video portals.

More interesting experiments are going to happen on Internet TV. From the bizarre to the narrow subjects. Play to the niche...

Smaller stories and/or “off grid” ideas will be produced. Behind the Behind the scene shows can be produced to really show the viewer what is going on.

They can get away with more…“Production Value” or quality -- they say in the cable video production business “close enough for cable” or now “close enough for the Internet”. Cheaper sets, smaller lighting packages work well on the Internet. Less space to light quicker set-up times etc.

This is going to be an interesting time to watch just what happens… how involved with the majors get in forming the new Internet TV landscape.

Matt Cook

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[Norman Johnson]

Here is new market potential.
Norm Johnson,
Producer