Is there any money in web video? That question has been forefront on my mind of late. I think the short answer is: some people are. We’ve all heard the stories of people like Michael Buckley making a living from YouTube. But let’s face it, Mr. Buckley’s YouTube success story is the exception, not the rule. Plus he’s an acquired taste. As I played the video while writing this, my wife said: “make it stop or I’m going to come over there and smash your computer.”
Frankly, I’m more interested in people and companies who have created sustainable business models in this ecosystem – networks with a portfolio of successful web shows. As two leaders in the world of web video startups celebrate notable milestones – Next New Networks, its one billionth video view and Revision3, its 5 year anniversary – the economic infrastructure of web TV seems to be maturing.
Can I Really Make Money Doing This?
In terms of how one makes money from web TV, the simplest answer is advertising/sponsorship. Regardless of what people say about “dialogue with community”, “marketing is a conversation”, “unmarketing” and other web 2.0 platitudes – the money transaction in video is audience for dollars. Trouble is, on the web, those dollars just aren’t adding up. In this interview with Paid Content’s David Kaplan, Next New Networks CEO Lance Podell bemoans the disparate valuation of web vs. TV video viewing audiences.
We’re constantly being asked to educate and consult advertisers. And we’re more than happy to do it. Ultimately, advertisers have to put their money where their mouth is. The only way they’re going to find out what really works is to start trying new things. While we have brave advertisers, who have come back time and again—Warner Bros., Samsung, Frito Lay, Unilever—but we haven’t seen the number of advertisers that is commensurate with the pace of the viewers we are attracting.
- Lance Podell, CEO Next New Networks via PaidContent
That said, I think the key is to balance targeted, niche content (you’re not going to win on the commodities of generalized content) with a desirable level scale, demonstrating those key elements to potential customers (advertisers), and creating a price point that sustains your efforts and satisfies your customers.
In my mind, you need to create a sustainable competitive advantage in order to be successful. TV is tricky in that regard. There are always new shows nipping at your heels and audience taste is mercurial. But part of being competitive in media is anticipating those challenges and creating new offerings. While big media relies on celebrity, the web often derives value from social currency or trust. Many successful web shows are hosted by trusted sources in their topic or niche. A few years ago it would’ve been simple enough to just start creating video awesomeness and aggregate a sustainable audience. Now there are just too many players. So, if you’re thinking of creating web video for profit, I would say to you:
- refine, with laser focus, what your show would be and who you would want to reach
- define how it is differentiated from competitors
- look where advertisers are spending now and create an offering that appeals to them (baby boomers?)
- do market research
- create a concept statement about your show and shop it around to potential customers
- from positive feedback, I’d write a business plan and take a hard look at costs/revenue projections
Thinking it Through
It is a complex ecosystem with a lot of moving parts – giving the prospective media entrepreneur a lot to think about. But such is the life of a micro-media-mogul. As you think about your show idea, you’ll need to really define why people need to watch your show. You’ll also need to consider the expectation for higher production value in web TV. Many people are watching video “over the top”, via devices connected to big screen TV’s. It takes a few more steps to “tune in” to a web video show. How are you making it worth the extra effort? Why do people need to come back to your show?
These are just some thoughts that I’ve been kicking around. Do you have a web show idea? Are you thinking of launching one? Have you thought it through? What have I missed here?
{ 127 comments… read them below or add one }
I thought about MoBuzz.tv when I read this. They were daily, very funny (Karina Stenquist was great! @karinastenquist) fast-paced, very targeted to their niche and a sizable viewership. Kinda like a well-produced Rocketboom But, it went under.. too much production cost to revenue, I assume. I don't know if web video will take off unless it gets into the “I don't really have to do anything but sit on my ass and it gets pumped onto my screen” distribution channel. The biggest thing going right now? Haul videos and I think the more famous ones will get a lift with the back-to-school season coming up.
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I think you hit on an important point. People want easy. I think the
only think that will make them overcome any obstacle to viewing beyond
finding the remote control is value. If the video content TRULY
provides information that makes their lives simpler, better, more
empowered – then you will see people willing to take the extra step to
watch.
Is There Real Money in Web Video? http://bit.ly/9q4O0q
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@JBordeaux !esta aqui! http://bit.ly/9q4O0q
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A good read for those of you in Web Vids: Is There Real Money in Web Video? http://bit.ly/9q4O0q (via @newmediajim)
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From Ace @newmediajim: Is There Real Money in Web Video? http://bit.ly/9q4O0q
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Timely for #njopencoffee crew RT @newmediajim: Is There Real Money in Web Video? http://bit.ly/9q4O0q cc: @ckieff @joemull
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I just wrote this post: “Is There Real Money in Web Video?” http://bit.ly/9q4O0q short answer: for some. I’d like to be on of them
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have you thought about making a web TV show? My blog post i asks “Is There Real Money in Web Video?” http://bit.ly/9q4O0q pse RT if u like
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MT @newmediajim: “Is There Real Money in Web Video?” http://bit.ly/9q4O0q // Jim is really trying to peel the new video onion.
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From one of the best in the world RT @newmediajim: “Is There Real Money in Web Video?” http://bit.ly/9q4O0q
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VergeNewMedia: Web Video – Show Me the Money!!:
Is there any money in web video? That question has been f… http://bit.ly/aGlqC7
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That's solid business advice for future Micro Media Moguls. Every venture starts with a need and/or question then the research and finally a plan. Like with every “new” concept and/or medium, the masses don't really know yet they need it until it is presented to them in an attractive and easy digestible package… made irresistible.
PS – I'm with Mrs. Long on Michael Buckley. I think I did 5 seconds before I had to turn him off.
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Web Video – Show Me the Money http://bit.ly/cBWUVI #webvideo #onlinevideo
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That’s solid business advice for future Micro Media Moguls. Every venture starts with a need and/or question then the … http://disq.us/j04vq
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Not speeding through my RSS feed… only read so far @newmediajim ‘s post on Show Me the Money Web Vid: http://bit.ly/b1GvXd
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in case you missed it yesterday, new post on my blog “Is There Real Money in Web Video?” http://bit.ly/9q4O0q
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Nice piece Jim! RT @newmediajim: new post on my blog “Is There Real Money in Web Video?” http://bit.ly/9q4O0q
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Web Video – Show Me the Money!! http://bit.ly/cLbUxn if you’re considering Web TV you need to
listen to guys like @newmediajim!
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Terrific post, Chris! Serious advice delivered humorously. Having written TWO books last year (a book/workbook combo) almost totally by accident, and having sold a few since, I can confirm that your "steps" are 100% on the money!
Doug
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Reminds me of similar advice that a wise man once said "If you want to write a book, take a dictionary and put all the words in the right order"
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I’ve recently started a blog, the information you provide on this site has helped me tremendously. Thank you for all of your time & work.
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Is it the right way? http://www.ukbootsoutlet.com Yes. Is it the best way? Yes. Is it the way that most media people like me would suddenly find ourselves flooded with only relevant and interesting stuff?http://www.usaugg-shops.com
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I love the simplicity of these tips. I also like the idea that it takes 1/2 the effort to write a book than to not. Great blog post. Thanks for all the great content you put out.
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I am guilty of all the reasons of How Not to write a book! Thanks for posting.
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It takes an awful long time to not write a book. – Douglas Adams
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Here’s how I wrote my book:
I started it in around March 2009. After around 6 months of intense work published it on clickbank. I kept on improving it (almost full time) and now in Aug 2010, almost 1.5 years and 54 major revisions later, I at least get pleasure in reading my own work.
Here are some of my tried and tested tips:
Most of the work gets done not on my laptop but while I’m on a walk outside my home. Morning walk works the best for me. It comes as inspiration.
All the answers are within us. Once we take up a challenge relevant things are automatically revealed to us. Chris is very right in saying "Never research endlessly." It’s more of a sub-conscious thing.
Don’t be afraid to share you work with your friends. To be true I got all negative feedback. 1 of my best friends said you should not publish it, it’s disgusting. I said in my heart you may be right but I’m going to prove you Wrong if not today may be tomorrow or the next week or the next year, I won’t give up. I never give up so should you…
If you get negative feedback look what’s wrong with it with a big magnifying glass – each and every single word. Improve it till you love it. Once you proclaim your book as your baby and be proud of it; it sells and sells more… It’s not an easy challenge but it’s worth it, I assure you.
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I love the last lines – It’s 1/2 as many steps to write a book than it is to not write one. Are you lazy? Then write a book. It takes half the effort of not writing a book. I think I’ll tweet that.
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Hey Chris. Are you writing a book? I remember you from Writercise (remember that??) and I always enjoyed your fiction. (thinking I should be writing more…)
Sandy
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I follow one rule: Hire a ghostwriter. Enjoy a long lunch.
Unless that’s two rules.
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good good study day day up.
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I’ve written 4 non-fiction business books and wrote all of them in 17 – 25 days each. Once you know what you want to say, the trick is to spend your time ACTUALLY writing.
Most people type at a rate of at least 20 words per minute (most pro-writers type at 60 words per minute). Over 60 minutes, that’s 1200 words. Or roughly 1,000 words an hour. If you write for 6 hours a day, that’s 6,000 words (I usually average 4,000 – 8,000 words in a day).
A medium size, 180-page business paperback book will run around 36,000 words or so. That’s 6 days of writing at 6,000 words per day. That’s a first draft done in a week. Yes, I’ve actually done this several times.
BTW this assumes you write about something you know (and excludes any time you might spend on research)
It helps to drink enormous amounts of sugar and caffeine… and to chain yourself to your desk and force yourself to write 1,000 words before you allow yourself to go to the restroom (hey, it’s all about motivation right?)
The other tips I found helpful are:
1) create a high level outline before you start (so when you write you don’t have to think about organization, you only have to think about getting your ideas down on paper… this is KEY… no thinking during writing time, only writing)
2) write like how you talk (kind of like blogging) – it’s more conversational (which reads better) and its much easier to write than adopting some stiff formal tone people think they’re supposed to adopt
3) write what pops into your head (just like you say what you think during a verbal conversation)
4) do NOT edit anything while your write (editing is a logical activity, writing is a creative one… very hard to do both simultaneously without losing a ton of productivity in the process)
5) once you’re done with your first draft, then go back and logically edit everything to have it make sense (if it takes me a week to write a 1st draft, it takes me a week to edit that draft into something that makes sense)
I’ve had 2 or 3 of my clients who’ve seen me do this repeatedly and wrote their own books in under 3 weeks. It’s very do-able.
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Is There Real Money in Web Video? http://bit.ly/9q4O0q (via @newmediajim)
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Mind map all the derivatives.
Construct flow charts for each.
Build spreadsheets for anticipated revenue streams.
But, don’t write.
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Thank you much Chris. This is an useful and awesome article and it stings to the bone because of the brutal true in the message and words. I will do better. I will write more. I will be engaged in real change in my personal life and writing. You are an inspiration.
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How do you find a buyer?
This comment was originally posted on chrisbrogan.com
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Simple but great advice!
This comment was originally posted on chrisbrogan.com
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I write almost all the time. Currently, I am working on my PhD in Organization and Management and conduct research all the time. I like doing it. Also, I have a serious Website with some hot topics. You can find me on Facebook, Twirtter, Linkin and Google. Check me out at: http://www/foreignpolicyandmore.com
This comment was originally posted on chrisbrogan.com
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I write almost all the time. Currently, I am pursuing a PhD in Organization and Management and conducting research is a basic part of the territory. However, I write 5 to 6 hours a day on my Blog.Website:foreignpolicyandmore.com writing about serious issues and hot topics that we are concern about. I find that writing gives me a voice to reach out to others to help bring solutions and to support and inspire others.
This comment was originally posted on chrisbrogan.com
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JIm,
This post is right on the money. I don't have much else to add other than in this world of independent media, content seems to trump quality in so many cases. You can have the mics, lights, and a pretty HD pic, but at the end of the day, if you're not speaking to an audience, a niche audience, you may be frustrated with your results (unless your like me and just like to share life experiences and some info). Great analysis my friend.
ac
http://www.myurbanreport.com
Hey Amani! glad you stopped by! I loved your video demonstrating how
something as simple, but so often neglected, as connecting an external
mic to your camera makes a HUGE difference. Simple but important lesson.
JIm,nnThis post is right on the money. I don’t have much else to add other than in this world of independent media, content seems to trump quality in so many cases. You can have the mics, lights, and a pretty HD pic, but at the end of the day, if you’re not speaking to an audience, a niche audience, you may be frustrated with your results (unless your like me and just like to share life experiences and some info). Great analysis my friend.nnacnhttp://www.myurbanreport.com
JIm,nnThis post is right on the money. I don’t have much else to add other than in this world of independent media, content seems to trump quality in so many cases. You can have the mics, lights, and a pretty HD pic, but at the end of the day, if you’re not speaking to an audience, a niche audience, you may be frustrated with your results (unless your like me and just like to share life experiences and some info). Great analysis my friend.nnacnhttp://www.myurbanreport.com
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