The incredible growth of online video is getting people's attention. Companies, organizations, media moguls, and investment bankers are jumping on the band wagon with enthusiasm and hope.
YouTube and Vimeo are leaders in the user-generated content industry, and they're still trying to figure out a way to get their money back. YouTube has never created enough revenues to cover its bandwidth costs and return Google's Investment, but it's a substantial part of Google's stock value, and it's hard to define the R.O.I. on the YouTube investment. And with YouTube's recent issues with 1.5 billion Muslims, 2 billion Chinese and 140 million Russian viewers, now it's even harder to figure out its future. Check on Wikipidia the YouTube Censorship section.
Vimeo has come up with the recent idea of tipping filmmakers, which seems like a desperate attempt to find a solution that just doesn't exist on platforms with overwhelming user generated and non-monitored content. Thomas Courtney of Models Webtv explained the issues of Vimeo's tipping jar in his article, How To Make Money Through a Website ~ A Piggy Bank or Tip Jar.
Investors seek medium and long-term R.O.I. (return on investment). Online video's success is linked to two keywords:
Speed of execution is key. This allows content providers, publishers, and advertisers to test content and measure success rate so that they can adjust their target accordingly to new content and strategies.
Quality comes with professional and monitored content. User-generated content and non-monitored content create a liability that can damage a brand or shut down a platform as it happened in Russia with YouTube last week and still goes on in other countries like China. Advertisers can't afford losing hundreds of millions of potential viewers and buyers.
Read my article on the INTERNET vs. TV business model, Video Search Engine in the Wake of Quality TV Programming. I also wrote something about the value of Professional Video Search Engine we are working on.