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User generated online video – is the honeymoon over?

January 16, 2007

ScreenDigest have released some research findings into user generated online video (UGOV). Their analysis is that:

Consumer usage exploded in 2006 but revenues will prove slow to develop. The honeymoon period for user generated content is over.

Despite the rather pessimistic headline, their report actually points to video advertising revenues growing from $200m in 2006 to $900m by 2010. However they are predicting that user generated video will contribute just 15% of this despite providing over 50% of the actual video content on the Internet.

They point to five business models currently being used to monitise user’s videos:

  • Advertising
  • Content Licensing
  • D Commerce (digital sales and rental of premium movie and TV content)
  • Subscriptions
  • Technology Licensing

But senior analyst at ScreenDigest, Arash Amel, suggests that:

No one has found a way to make real money from the huge audiences who participate on these sites.

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