Video Content: Some thoughts

Below is a bit of a muddle of thoughts from recent business meetings and the AdTech (Sydney) conference, around the Online Video Content marketplace:

There are a number of factors that will contribute to the success of a new start up in the delivery of niche online video (and audio) unique content.

The most important aspect of such as start up is of course content, and secondly the monetization of this via a suitable business model (i.e. advertising / sponsorship or subscription). You can ‘t make money without the content, so content is again (and will always be) KING.

Around the world, we are seeing Recycled content from the producers of broadcast entertainment media (i.e. Freemantle Media with Idol et al). They show the content one night, and the next day it’s up online for you to consume the best parts (surrounded by paid advertising of course). This is the way of the future, and now, whereby newly produced video / TV content will be available for consumption (let’s face it, it already is via http://www.quicksilverscreen.com and the like) so new followers of such shows as Underbelly can “catch up” on last weeks (or the whole lot) episodes if they missed it.

Recycled content is one thing, but what about original content? Youtube has it, and so do many many other sites. So the question is, how do you launch a new online video content website with niche content, and attract the right level of eyeballs to attract break even / profitability?

Before I answer that, here are five key learnings from AdTech’s excellent panel (“I’ll get on there one day”, he said):

1. 1) Online video, finally, is now a mainstream fact.

a. Media & publishers are scrabbling for content, and scrambling even more for models that will convert this into money.

b. However, nobody has yet put hard CPM $ figures around the value of the content, and that’s a hard thing to do as the consumer will determine that contents value, not the publisher, advertiser or media company.

2. 2) Advertising funded content is by far the best business model.

a. It’s free for consumers, and therefore more will consume your content.

b. The more content consumption (i.e. eyeballs) the higher the value of your advertising.

c. Having said this, no media has yet put a definitive value on the CPM $ ($ cost per 1,000 eyeballs).

d. Very few sites do subscription well, and the content would have to be premium content in order to generate the type of revenue needed to get a decent return.

3. 3) Get your content to cross platform

a. Don’t just put it on your website

b. Look to mobile, Facebook and YouTube (and others) to get your content out there, driving traffic to your site.

c. Mobile revenue models are possible, and will grow fast in 2008-2009+

4. 4) Blog about your brand and business build experience.

a. You’re business is Content and the monetization of that content, delivered to the masses by Web2.0 technology capability.

b. As you are “in” the industry, you need to get blogging about your business

c. Also, get to and meet with as many Web industry people, publishes and business as you can once you have launched.

5. 5) Don’t launch until it WORKS!

a. Site needs to look professional

b. Every button and click needs to work as required.

c. Streaming video and downloadable content needs to be fast (good hosting) and high quality

d. Expect spikes in streaming – 1 “hit” with a content piece can crash your entire site if you’re not prepared when serving that content.

 

So, back to the question “How do you launch a new online video content website with niche content, and attract the right level of eyeballs to become break even/ profitability?”

We’ll, I don’t know. But I’m about to go on the journey to find out with www.birthmusic.tv (ignore the current site, if they listen and act it’ll be re-branded and launched within 6 months).

~ by stusheridan on March 13, 2008.