posted by Christian
The trend was officially started by ManiaTV.com a couple months ago, and the world is taking notice. With some acceptions, user-generated video content is no longer the darling of the web. Here’s how the shakedown started, and-for my buddies at ManiaTV.com-please excuse my attempt to recount what you guys lived through.
You may not have heard much about them, but ManiaTV is a dominant player in the online video space, and their plight out of the gates was to beat MTV to their game online. They have done a great job, but-over the course of time-they noted even the finest details. One was that, with some acceptions, large advertisers wanted nothing to do with UGC (user-generated content). A few months ago, they cut the UGC cord. No mas! The risk of damaging their brands was simply too great for advertisers, and more importantly, end users were seeking quality content in the big mess that is UGC. Turns out that they were not the only video company looking for a way out. Just yesterday, we got notice that Brightcove is cutting and running:
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“Dear Brightcove.TV member, Beginning December 18, 2007, we plan to end support of direct consumer uploads to Brightcove.TV. As a result, you will not be able to upload new videos to Brightcove.TV after December 17, 2007. But videos you have already uploaded to Brightcove.TV will remain available on the site and through your Brightcove.TV channel. Videos you have embedded in other sites and blogs will also continue to play. If you have a Brightcove Platform or Network account, which means you use the Brightcove Console, then you will still have the option to promote videos on Brightcove.TV. Brightcove.TV will continue to be a guide to great video from Brightcove media and business partners. The site will have new videos added to it daily from these partners and these videos can be saved as favorite videos in your channel. If you work for a media company, marketer, non-profit, or business and are looking to purchase the Brightcove platform to publish and distribute video on your own site, please visit the Brightcove Products Overview section of our website. We appreciate your interest in Brightcove and apologize for any disruption this change may cause you. Sincerely, |
Is this it for UGC? Not for WellcomeMat (our focus is not entertainment), but the shakedown in the UGC market has definitely begun to run its course. Those that have been subsidized, such as Grouper (acquired by Sony and renamed “Crackle”), and YouTube (the Goog) through an acquisition are more than likely safe for a while. For the rest, it is make it or break it time, especially if you are burning VC cash.
Note: WellcomeMat’s focus is entirely different than the entertainment world’s. We will continue to Wellcome user-generated video content because, quite frankly, we view it as a step in the right direction for people to be trying video for themselves: the most likely scenario is that they will see that hiring a pro is the way to go, or get serious and master the craft. We are glad to be a part of both paths.
If you want to gain a better perspective of what’s going on within the minds of the big dogs of online video advertising, watch this panel (shot by Phil DiVideo):
- BROWSE / IN TIMELINE
- « Vegas Through the Eye (lens) of Eric Manthey
- » De-Construction, Re-Construction
- BROWSE / IN video trend online video advertising video
- « Agent + Video Pro = Magic?
- » The Future of Real Estate Video - FCC Style
13 comments...
TubeMogul Blog » User Generated Video is Dead? commented on Dec 06 07 - 12:55 am[…] put out an interesting blog post recently titled, “The Beginning of the End for User Generated Video?” In it, they basically state that the reluctance of advertisers to plop down money in UGC […]
Michael / Nov 28 07 - 1:01 pmSo, who will be populating sites like Brightcove with content? Only paid professionals? How boring…:)
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WellcomeMat / Nov 28 07 - 1:08 pmHonestly, Brightcove is one of the only big video companies that can make this move and get away with it: they have the backing of some very large brands, news outlets etc. In other words, they won’t have a problem gathering quality, ad worthy, content. The large, successful? video portals don’t really have this opportunity as much. I just think that so many companies saw the UGC action going on, and it would have been more risky to sit on the sidelines. Everyone wanted a piece of something that isn’t panning out (not to say that it won’t pan out…it just isn’t yet).
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Michael / Nov 28 07 - 2:47 pmThe fact that venture capitalists are having a difficult time monetizing the UGC video realm by introducing pre-roll style advertising should be an indication of the stark differences between traditional television and the online space. As a frequent web video viewer, I hope that they continue to have a tough time. I am not interested in seeing 15 second spots running in front of my Youtube vid views any time soon.
Am I interpreting this whole thing incorrectly?
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WellcomeMat / Nov 28 07 - 8:49 pmActually, to the credit of VC(s) and the companies that they have funded, online video companies are trying everything: pre-rolls, post-rolls, interactive ad delivery..everything. The main problem is not the types of ad delivery mechanisms, but rather the fact that the big brands (and therefore the lion’s share of ad revenue) aren’t largely willing to gamble their brands within user generated content. It’s potentially dangerous for them.
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WellcomeMat / Nov 29 07 - 9:46 amFact Check Completed. My friend from Mania sent this back to me via email regarding this post:
“Maniatv was the first to call BS on user gen because no one wants to sponsor content such as people dancing in their underwear or pirated videos. Wellcome’s offering is completely different and totally viable because the video is professional in nature, has intrinsic value to the industry and would not harm a brand image if it were sponsored.
Web Video: Move Over, Amateurs
BusinessWeek - Nov 19, 2007
The 3000 user-generated channels simply didn’t pull in enough viewers, maniatv CEO Peter Hoskins says. Roughly 80% of people were watching the professional … http://www.businessweek.com/technology/content/nov2007/tc20071119_701831
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Joseph Ferrara.sellsius / Nov 29 07 - 10:05 amQuite agree that advertisers (at least the big dogs) don’t see the value in UGC advertising. And those who built there models on that foundation face problems.
So the challenge for the creative types is to find out how to monetize UGC video that does not depend on big dog advertising bucks.
There are answers. Just think outside the video screen box
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Fred Light / Nov 29 07 - 9:31 pmIt’s all about money. I’ve been saying this for 2 years, and it’s always been my biggest head scratcher for all of these video sites that are cropping every other day. Nobody goes into business for their health - if you can’t make money, you will be gone. If you’re being supported by VC money, and you’re not MAKING money at some point, you will also be gone.
All of these video sites are doing pretty much the same thing - and none are making any money. It just makes no sense to me, so this news is not at all surprising, other than it took this long to start seeing some falling by the wayside.
Everyone is experimenting with different ways to monetize this business, and I’m sure at some point, something will stick - and work. But until that time comes, I’m afraid many of these sites will probably disappear over the coming year or two….
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WellcomeMat / Nov 29 07 - 9:38 pmDon’t plan on WellcomeMat disappearing…we’re just starting to have some fun.
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LuxuryProperty.c om / Dec 01 07 - 6:05 pmThis announcement by Brightcove comes as no surprise…
Just as Fred suggested, any business unable to monetize their video content is going to be facing storming weather ahead. If UGC videos aren’t entertaining, educational or providing value to the viewer they won’t be watched. If nobody is watching, then of course from a business (aka advertising) perspective they are worthless.
The real adverting dollars will be found attached to professional video content. “A Pew Internet & American Life Project study suggests 62% of online video viewers report their ‘favorite’ internet videos are those that are professionally produced.” This statistic is even a bit dated, the number has grown.We’ve seen this trend brewing for awhile. The last thing anyone should want is a bunch of real estate agents walking through houses with video cameras. Who is going to want to watch that?
I posted on this issue back in August. UGC is on the way out. PGC is on the way in.
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WellcomeMat / Dec 03 07 - 8:41 amYou are right in regards to entertainment video online, but miss on the real estate front. Entertainment is not what real estate video is all about, although entertainment value does help. We’d all rather watch entertaining videos, but in the end, real estate video is about matching buyers to properties. Real estate videos will rarely meet the masses’ entertainment standards, but video helps the masses nonetheless.
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Phil / Dec 03 07 - 1:28 pmIt has been our experience (www.azoocacapture.com) that the large advertisers are concerned about being “attached” to a questionable video — one with questionable content. If a questionable video hits the viral highway with your company attached, the potential PR nightmares would be horrific. When we start advertising, we plan to keep the advertising seperate from the video so that advertisers exposure will be limited.
USG will be around forever. PSG will be around forever. There are situations for both. Monetizing continues to be a challenge.
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Obeoman / Dec 04 07 - 7:23 amOnce again, the market decides: garbage in, garbage out - but not from Wellcomemat.
The consumer-in whatever role they play-will determine what the best product is with their money.
Obeoman
Steven Stearns[Reply]
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