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Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

YouTube to Share Revenue with Content Providers - Make Money from your Home Movies

Personal_Finance / Money Making Jan 29, 2007 - 08:03 PM GMT

By: Shahla_Walayat

Personal_Finance

In a video interview posted on the Youtube site, the CEO Chad Hurley, declares intentions of sharing advertising revenues with content providers. "In terms of paying users revenue against content they're uploading, we're definitely going to move in that direction," said Chad Hurley.

The intention is to continue to build and maintain the user base before the switch to an advertiser driven service - "We didn't want to build a system that was motivated by monetary reward. When you start giving money to people from Day One ... the people you do attract will just switch to the next provider that's paying more," he said. "We feel we're at the scale now that we'll be able to do that and still have a true community around video." He said.


YouTube to Share Revenue with Content Providers - Make Money from your Home Movies

Details are likely to follow in the coming months. The move is seen as enviable since Google took over Youtube last year as part of the overall targeted ads strategy that is behind much of the success of google.

Youtube has already announced the development of an "audio-fingerprinting" technology that will compensate the music industry by identifying any music that is being played in videos and sharing the revenue between the video producer and the the Music Label.

Youtube opens the way for a boom in home video production industry, as literally some users are expected to strike gold ! Competitor online video site Metacafe has already put in place a "content producer rewards" program since October 06. Metacafe pays users $5 per 1,000 viewing's, with a 20,000 minimum. So Youtube could follow a similar path. Alternatively the clicks on adverts displayed around the videos could be the source of the ad sharing revenue.

Stay tuned and read up on your video editing skills in anticipation of a new ebayesk industry.

On a separate note, this is likely to further take advertising revenues away from traditional media such as local TV stations. As more and more people watch video online rather than on the big box.

By Shahla Walayat

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