Monetizing YouTube

Email this post Print this post
By Barry Ritholtz - May 30th, 2009, 1:15PM

Fascinating discussion over at Barron’s Tech blog — Tech TraderDaily –on how Google can turn YouTube into a profitable division: Micropayments for hosting videos:

Asking the question “Is it really a good idea to allow users to upload video of anything?” Bernstein analyst Jeffrey Lindsay looks at the details of YouTube usage:

Lindsay notes that people are uploading clips at the rate of 15 hours of video every minute, and that many are being watched overseas where ad revenues are meager if they exist at all. He notes that the service is highly popular in Eastern Europe, the Middle East, Turkey and North Africa. He doubts that major brand advertisers would pay to stream ads in, say, Uzbekistan. He also notes that very few Uzbek videos will likely have large viewership, “eliminating the value of any edge-serving strategy and so destroying any economies of streaming at scale. Can Google ever make any money in these markets with YouTube?”

They alternative:

He thinks it might make sense to consider levying low but non-zero listing fees so people “stop listing rubbish and cover at least some of the hosting cost.” Lindsay proposes that videos that score well in user metrics could get a break on their fees which could go to zero for popular and advertising-friendly clips. Ad revenue could be split with content providers, but a hosting fee would apply if if revenue fell below specified levels.

Google is after all, a business — and YouTube an important, but expensive part of that business. But can (or should) Google subsidize video sharing at a loss of half a billion dollars per year forever?

>

Source:
Should YouTube Charge To Host User-Generated Video?
Eric Savitz
Tech TraderDaily May 29, 2009, 5:23 pm

http://blogs.barrons.com/techtraderdaily/2009/05/29/should-youtube-charge-to-host-user-generated-video/

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

15 Responses to “Monetizing YouTube”

  1. Paul Jones Says:

    I don’t know what they “should” do, but the things working against monetizing YouTube is the same thing that made Google a power house; a low market entry cost and a culture that abhors being asked to pay for anything.

  2. DL Says:

    Charging money – or abstaining from the same – on the basis of the number of video views does seem like an obvious approach… as long as the problems associated with “click fraud” can be minimized.

  3. franklin411 Says:

    The problem with charging is that there’s no way for the average poster to make a realistic cost-benefit analysis. You can’t determine in advance whether a video of grandma shooting an assault rifle at a pumpkin will be deemed to be view-worthy by 100 people or 100,000,000. So why would you pay to post it?

    It’s not like ebay, where you can do market research by looking up completed auctions to determine whether the cost of listing the item is worth the reward of a possible sale.

  4. nenmoonia Says:

    the problem that they’ll face is the moment they start charging for services, people will just flock to the next big video sharing place

    there’s dozens out there willing to keep it free if youtube doesn’t

  5. jnutley Says:

    >Franklin

    Uploads are not frozen in time from first appearance. You do not need to identify the value of your vid other than being willing to post it for the small flat fee.

    1) You upload your Gandma’s Vid for a flat posting fee

    2) The IT staff at You-Tube notices the hits going over 10,000 and climbing, they flag your file

    3) The Marketing Dept at You-Tube reviews all posts that might trend over 100,000 hits in the coming week, flags your vid, and e-mail’s you a proposal. Your upload fee money back if they can link to the vid from their portal page(s); and a (micro) piece of advertising action if you agree to have at least three of the potential advertisers videos in the attached list attached (one to any one customer, based on analysis done at You-Tube HQ) to your vid’s front end. Extra bennies if you can give them an HD version.

    4-a) the buzz on your upload fades away and nothing more ever comes of it

    4-b) your upload passes 1,000,000 hits and money is sent to your checking account, with another deposit for the 2nd million, etc, until the event described in (4-a) occurs.

  6. CFA Says:

    Nenmoonia hit the key point. Charging anything, even if insignificant, will push a lot of users to a different site.

    Also, recently I’ve seen a lot of adds at the bottom of a video for stuff like Mastercard, Itunes, etc. A lot of music videos offer to send you to Itunes to download it.

    I don’t see why they don’t just stick a 15-30 second add in front of a video. All of the major networks have online video now and that’s what they do.

    I don’t mind sitting through a 30 second add for something that’s free. If I really want to watch it, I’ll wait.

    Charging a hosting fee would be disasterous IMO.

  7. CFA Says:

    See this link for what I was talking about above. Also good for a laugh but the language is definitely NSFW

    SNL / Andy Samberg
    I’m on a Boat

    http://www.youtube.com/watch?v=4IBLaAClaRU

  8. drollere Says:

    internet businesses have continually wrestled with their business models when the models have been defined in terms of traditional categories. the separate fates of AOL and Yahoo! — bandwidth plus content, or application vs. media — illustrate the struggles.

    the current memes have migrated to the core concepts of platform, social, and user generated. businesses aspire to create technical systems that support applications, connect people to people, and provide low end tools for user generated media. the popularity of youtube in the middle east demonstrates that audience metrics are not necessarily profit indicators.

    i agree that the usage fee is not a no brainer solution, because it is fundamentally an up front cost: as with file sharing services, “fees” (including content or copyright restrictions) will usually be circumvented by newer, “free” providers.

    but users are not identically motivated. charge a fee for larger file storage capacity, high def delivery, custom page design, feeds and alerts and the like. posters who do aspire to MSM fame and fortune will pay for those services. why not pay $20/mo. to showcase your hard earned work? users who want to post their cellphone videos of their cat defecating in a toilet, or their brother doing jackass body stunts, can use the stripped down free service.

    in fact the logical extension is different fee rates for different delivery platforms, including video quality broadband and feature length content. one implication is that youtube provide a fee based channel for pornography. no other search term is as popular as “sex” — at least, for the whole time i was in the internet — and few other dvd content genres sell as many copies. that suggestion alone suggests how thorny it is to define a viable internet business model in the complex media environment of the past two decades.

  9. Moderlar Says:

    Thank you for sharing this

  10. DM RTA Says:

    In order to really figure out the next workable business model in the era of the digital universe I believe that you have to step back from how everyone has been conditioned for decades. A huge part of our culture, media content consumption, has been based upon rigging the free market to create a false economy. Pay for play, inside the world of old media is considered unethical or even immoral because the FCC was created to manage a limited public resource. Everything that followed is a result of a regulated market and imho, the result is not much different in healthcare in the US. The twisted nature of expectations is a result of mis-allocation of public creativity beased on the very regulation that is the foundation of the media vertical.

    Then, in one giant dam breaking type of event (about a decade ago) the barriers to entry began crumbling. Everything we see today is a result of the “river” reclaiming the land in the digital universe. Maybe, just maybe, Madonna should not be worth as much as she is for singing songs. (just a thought) Maybe the new digital universe is reminding us that people are naturally inclined to share ideas and that the right to profit, as people have for a long long time now, existed because of government regulation.

    I also suspect that even if leading industry execs gather and promise to lower costs by a trillion dollars over the next decade it won’t mean spit.

    Carl Malone would argue that high quality content would not get produced in quantity if this “right” is challenged. The problem is that it already has been. No matter what Congress does to Google or any enterprise designed to distribute content the landscape is permanently changed. All the white noise is simply the wreckage of old structures no longer able or willing to compete.

    Maybe, just maybe, we should not be allocating quite so much of our social capital to profiting from content monetization. Today’s DustBowl economy is the old media empires likely to go the way of GM. I think it is a good thing from a societal standpoint as we reluctantly come to terms with the idea that we are no longer very competitive in the world economy of products. Think of it as a giant consolidation or, I prefer the term ‘social correction’.

    There is a business model that will accommodate the new environment only the older generation is going to have to make room for new ideas before it can happen. That’ll take a while and will be a nasty fight when it does happen. For now I expect lots of empty promises and politically motivated legislation that benefits political supporters and not the consumers of content.

  11. johnny Says:

    I think think the answer to their problem is a new architecture. They should be using a file sharing system to offload bandwidth utilization peer to peer rather than client central server where they bare the brunt of the bandwidth costs. something like bit torrent.

  12. hughbastard Says:

    To Mister Richard Branson,
    I am communicating to you on behalf of a group of people who for the past amount of years have been involved in the crimes that are tantamount to treason in a majority of nations worldwide, that have at times been know as terrorist and in other times liberating. This group has had the willing support of many others in its existance and now finds itself in the most dire need. They need one million dollars for the continuation of their cause, they know that in the past you have shown sympathy to groups with a similar belief and fundamental core structure. They believe that you are the man to help continue this cause. This group is known in various circles as FBI, they have promoted me on the basis that I will receive five percent of the total amount that you will willing donate to their cause, for the continuation of this mission. They are currently in the process of promoting a month long exercise at the expense of the public and other private groups to help achieve this cause; with your help the casualties of this, may be minimised.

    Sincerely H.B.

    对理查・ Branson先生,我沟通给您代表为过去相当数量几年在罪行介入了是同等的对在大多数的谋反国家全世界的一群人,那时常是知道作为恐怖分子和在解放其他的次内。 这个小组在它的存在有许多其他的愿意的支持和现在发现自己在迫切需要。 他们需要他们的起因的继续的一百万美元,他们知道从前您显示了同情对与一个相似的信仰和根本核心结构的小组。 他们相信您是帮助的人继续这起因。 这个小组被认识以各种各样的圈子作为FBI,他们提升了我,根据我将接受您将愿捐赠到他们的起因总额的百分之五,这个使命的继续的。 他们当前是在促进月久的锻炼过程中牺牲公众和其他私人组帮助达到这起因; 在您的帮助下此的伤亡,也许减到最小。 恳切H.B。

    對理查・ Branson先生,我溝通給您代表為過去相當数量几年在罪行介入了是同等的對在大多数的謀反國家全世界的一群人,那時常是知道作為恐怖分子和在解放其他的次内。 這個小組在它的存在有許多其他的願意的支持和現在發現自己在迫切需要。 他們需要他們的起因的繼續的一百萬美元,他們知道從前您顯示了同情對與一個相似的信仰和根本核心結構的小組。 他們相信您是幫助的人繼續這起因。 這個小組被认识以各種各樣的圈子作為FBI,他們提升了我,根據我將接受您將願捐贈到他們的起因总额的百分之五,這個使命的繼續的。 他們當前是在促進月久的鍛煉過程中犧牲公眾和其他私人组幫助達到這起因; 在您的幫助下此的傷亡,也許減到最小。 懇切H.B。

    Aan Mijnheer Richard Branson, Ik communiceer aan u namens een groep mensen die voor de afgelopen hoeveelheid jaren in de misdaden zijn geïmpliceerdr die wereldwijd aan verraad in een meerderheid van naties gelijkwaardig zijn, die af en toe kennen als terrorist en in andere tijden het bevrijden zijn geweest. Deze groep heeft de gewillige steun van vele anderen zijn bestaand gehad en zich nu in het meeste nijpend tekort gevonden. Zij hebben één miljoen dollars voor de voortzetting van hun oorzaak nodig, weten zij dat in het verleden u sympathie aan groepen met een gelijkaardig geloof en een fundamentele kernstructuur hebt getoond. Zij geloven dat u de man bent helpen deze oorzaak voortzetten. Deze groep is gekend in diverse cirkels aangezien FBI, zij me op de basis hebben bevorderd dat ik vijf percent van het totale bedrag dat u bereid om aan hun oorzaak te schenken zal, voor de voortzetting van deze opdracht zal ontvangen. Zij zijn momenteel tijdens het bevorderen van een maand lange oefening ten koste van het publiek en andere privé groepen helpen deze oorzaak bereiken; met uw hulp kunnen de slachtoffers van dit, worden geminimaliseerd. Oprecht H.B.

    À Monsieur Richard Branson, Je communique à vous au nom d’un groupe de personnes qui pour la quantité passée d’années ont été impliqués dans les crimes qui sont équivalents à la trahison dans une majorité de nations dans le monde entier, cela ont parfois été savent comme terroriste et en d’autres fois libérant. Ce groupe a eu l’appui disposé de beaucoup d’autres dans son existence et se trouve maintenant dans la plupart de besoins extrêmes. Ils ont besoin d’un million de dollars pour la suite de leur cause, ils savent que dans vous avez montré au delà la sympathie aux groupes avec une croyance semblable et une structure fondamentale de noyau. Ils croient que vous êtes l’homme à aider à continuer cette cause. Ce groupe est connu dans divers cercles comme FBI, ils m’ont promu sur la base que je recevrai cinq pour cent du montant total que vous voulant donner à leur cause, pour la suite de cette mission. Ils sont actuellement en cours de favoriser un exercice long de mois aux dépens du public et d’autres groupes privés pour aider à réaliser cette cause ; avec votre aide les accidents de ceci, peuvent être réduits au minimum. Sincèrement H.B.

    Zum Herrn Richard Branson, Ich stehe zu Ihnen im Namen einer Gruppe von Personen in Verbindung, die für die letzte Menge von Jahren in die Verbrechen, die mit Verrat in einer Majorität Nationen weltweit gleichwertig sind, das sind gewesen manchmal wissen als Terrorist und in anderer Zeitbefreiung miteinbezogen worden sind. Diese Gruppe hat die bereite Unterstützung von vielen anderen in seinem Bestehen gehabt und jetzt im meisten dringenden Bedarf findet. Sie benötigen eine Million Dollar für die Fortsetzung ihrer Ursache, wissen sie, dass in der Vergangenheit Sie den Gruppen mit einem ähnlichen Glauben und grundlegenden einer Kernstruktur Sympathie gezeigt haben. Sie glauben, dass Sie der Mann sind, zum zu helfen, diese Ursache fortzusetzen. Diese Gruppe bekannt in den verschiedenen Kreisen als FBI, sie haben gefördert mich auf der Basis, der ich fünf Prozent der Gesamtmenge, die Sie willend zu ihrer, Ursache zu spenden werden, für die Fortsetzung dieses Auftrags empfange. Sie sind z.Z. bei der Förderung einer einmonatigen Übung auf Kosten von der Öffentlichkeit und anderen privaten Gruppen, um zu helfen, diese Ursache zu erzielen; mit Ihrer Hilfe können die Unfall von diesem, herabgesetzt werden. Herzlichst H.B.

    Στον κύριο Richard Branson, Επικοινωνώ με σας εξ ονόματος μιας ομάδας ανθρώπων που για το προηγούμενο ποσό ετών έχουν συμμετάσχει στα εγκλήματα που είναι ισοδύναμα προς την προδοσία σε μια πλειοψηφία των εθνών παγκοσμίως, τα οποία ήταν κατά περιόδους ξέρουν ως τρομοκράτης και σε άλλη χρονική απελευθέρωση. Αυτή η ομάδα είχε την πρόθυμη υποστήριξη πολλές άλλες στην ύπαρξή της και βρίσκεται τώρα στην περισσότερη τρομερή ανάγκη. Χρειάζονται ένα εκατομμύριο δολάρια για τη συνέχεια της αιτίας τους, ξέρουν ότι στο παρελθόν έχετε παρουσιάσει συμπόνοια στις ομάδες με μια παρόμοια πεποίθηση και μια θεμελιώδη δομή πυρήνων. Θεωρούν ότι είστε το άτομο για να βοηθήσετε να συνεχίσετε αυτήν την αιτία. Αυτή η ομάδα είναι γνωστή στους διάφορους κύκλους δεδομένου ότι FBI, με έχουν προαγάγει στη βάση ότι θα λάβω πέντε τοις εκατό του συνολικού ποσού που πρόθυμος να δώσετε στην αιτία τους, για τη συνέχεια αυτής της αποστολής. Είναι αυτήν την περίοδο στο στάδιο της προώθησης μιας μακροχρόνιας άσκησης μήνα εις βάρος του κοινού και άλλων ιδιωτικών ομάδων για να βοηθήσουν να επιτύχουν αυτήν την αιτία με τη βοήθειά σας τα θύματα αυτού, μπορούν να ελαχιστοποιηθούν. Ειλικρινά H.B.

    Al l$signor Richard Branson, Sto comunicando a voi a nome di un gruppo di persone che per la quantità passata di anni sono stati coinvolgere nei crimini che sono equivalenti al tradimento in una maggioranza delle nazioni universalmente, quello occasionalmente sono stati sanno come terrorista ed in altre volte che liberano. Questo gruppo ha avuto il supporto disposto di molti altri nella relativa esistenza ed ora si trova nella maggior parte della necessità estrema. Hanno bisogno di un milione di dollari per la continuazione della loro causa, sanno che nel passato avete indicato la compassione ai gruppi con una simile credenza e una struttura fondamentale del centro. Credono che siate l’uomo da contribuire a continuare questa causa. Questo gruppo è conosciuto in vari cerchi come FBI, lo ha promosso sulla base che riceverò cinque per cento della somma totale che volendo donare alla loro causa, per la continuazione di questa missione. Sono attualmente nel corso della promozione dell’esercitazione di lunghezza di mese a scapito del pubblico e di altri gruppi riservati per contribuire a realizzare questa causa; con il vostro aiuto gli incidenti di questo, possono essere minimizzati. Francamente H.B.

    氏にリチャードBranson、私は国家の大半の反逆に世界的にほとんど等しい罪にテロリストとしてそして解放する他の時間で年の過去量のために、それ時々あったあることが知っているかかわった集団に代わってあなたと伝達し合っている。 このグループに存在で多くの他の喜んでサポートがあり、今緊急に必要とする状態の見つける。 それらは原因の継続のための百万ドルを必要とする、以前同じような確信および基本的な中心の構造を持つグループに共鳴を示したことを知っている。 彼らはこの原因を続けるのを助けるべき人であることを信じる。 このグループはFBIとしてさまざまな円で私があなたがこの代表団の継続のための総計の5%原因に寄付することを決定する受け取るという事実に基づいて、彼ら促進し私を知られていて。 それらは公衆および他のプライベートグループを犠牲にして月の長い練習の促進の過程においてこの原因の達成を助けるように現在ある; あなたの助けによってこれの死傷者は、最小になるかもしれない。 誠意をこめてH.B。

    미스터에 리처드 Branson, 나는 국가의 대다수에 있는 반역과 세계전반 동등한 범죄에서 테러리스트로 그리고 해방하는 다른 시간에서 년 과거 양을 위해, 그것 때때로 이다 것이 알고 있다 포함된 집단의 대신으로 당신에게 교통하고 있다. 이 그룹은 그것의 실존에서 많은 다른 사람의 기꺼이 하는 지원이 있고 지금 절박한 필요에서 찾아낸다. 그들은 그들 원인의 계속을 위한 일백만 달러를 필요로 한다, 과거에는 당신이 유사한 신념 및 기본적인 중핵 구조를 가진 그룹에 교감을 보여주었다는 것을 알고 있다. 그들은 당신이 이 원인을 계속한다고 것을 도울 남자 다고 믿는다. 이 그룹은 FBI로 각종 원형에서 나가 당신이 이 임무의 계속을 위한 총계의 5% 그들 원인에 기증하는 것을 의도한 받을 것이다 기초로 하여, 그들 증진해 저를 알려져. 그들은 공중 및 다른 개인 그룹을 희생해서 달 긴 운동을 승진시키기의 과정에서 이 원인을 달성하는 것을 돕도록 지금 이다; 당신의 도움으로 이것의 사고는, 극소화될지도 모른다. 근실하게 H.B.

    Ao senhor Richard Branson, Eu estou comunicando-me lhe em nome de um grupo de pessoas que para a quantidade passada de anos foram envolvidas nos crimes que são equivalentes à traição em uma maioria das nações no mundo inteiro, isso foram às vezes sabem como o terrorista e em outras vezes que liberam. Este grupo teve a sustentação disposta de muita outro em sua existência e encontra-se agora em a maioria de extrema necessidade. Precisam um milhão de dólares para a continuação de sua causa, sabem que no perto você mostrou a simpatia aos grupos com uma opinião similar e uma estrutura fundamental do núcleo. Acreditam que você é o homem a ajudar a continuar esta causa. Este grupo é conhecido em vários círculos como o FBI, eles promoveu-me na base que eu receberei cinco por cento da quantidade total que você querendo doar a sua causa, para a continuação desta missão. Estão atualmente no processo de promover um exercício de um mês. às expensas do público e de outros grupos confidenciais para ajudar a conseguir esta causa; com sua ajuda as víctimas desta, podem ser minimizadas. Sincera H.B.

    К господину Ричард Branson, Я связываю к вам именем группы людей которые для прошлого количества лет включались в злодеяния которые равный к предательству в большинстве наций всемирно, то временами знают как террорист и в других временах освобождая. Эта группа имела охотно готовую поддержку много других в своем существовании и теперь находит в большинств крайней нужде. Им нужны миллион долларов для продолжения их причины, они знают что в в прошлом вы показывали сочувствие к группам с подобным верованием и основной структурой сердечника. Они верят что вы человек, котор нужно помочь продолжать эту причину. Знают эту группу в различных кругах как ФБР, они повышала меня на основание которому я получу 5 процентов полной суммы которая вы будете завещающ для того чтобы подарить к их причине, для продолжения этого полета. Они в настоящее время в процессе повышать месячную тренировку за счет публики и других приватных групп для того чтобы помочь достигнуть этой причины; с вашей помощью потери этого, могут быть уменьшены. Задушевно H.B.

    A señor Richard Branson, Estoy comunicando a usted a nombre de un grupo de personas que para la última cantidad de años han estado implicadas en los crímenes que son equivalentes a la traición en una mayoría de las naciones por todo el mundo, eso han estado ocasionalmente saben como terrorista y en otras veces que liberaban. Este grupo ha tenido la ayuda dispuesta de muchos otras en su existencia y ahora se encuentra en la mayoría de la extrema necesidad. Necesitan un millón dólares para la continuación de su causa, saben que en el pasado usted ha demostrado condolencia a los grupos con una creencia similar y una estructura fundamental de la base. Creen que usted es el hombre a ayudar a continuar esta causa. Conocen a este grupo en varios círculos como FBI, ellos me ha promovido sobre la base que recibiré el cinco por ciento de la cantidad total que usted queriendo donar a su causa, para la continuación de esta misión. Él está actualmente en curso de promover un ejercicio de un mes a expensas del público y de otros grupos privados para ayudar a alcanzar esta causa; con su ayuda las muertes de esto, pueden ser reducidas al mínimo. Sinceramente H.B.

  13. How the Common Man Sees It Says:

    They could pay for the whole site if they would just stop blocking those right wing, anti-government videos that seem so very popular. If they were to just tack commercials on them instead of suppressing them in order to meet their liberal bias they could pay for you tube and maybe a good portion of google. Alas, ideology is expensive. :twisted:

  14. Greg0658 Says:

    I will chime in on this thread since I use YouTube to present video stuff to the world and have appreciated its freeware aspect. Thanks YouTube / Google.

    hate it:
    1> imbedded ads in the video to pay the way
    2> charged for bandwidth of uploaded and/or downplayed video

    would be ok with:
    1> charged a yearly fee – if it was in my ballpark (minor leagues)
    2> charged per upload minute or gigs stored – ditto (ballpark)
    3> ads on the play page at YouTube

    Beyond those comments – yearly fees and upload charges would slow the misc junky stuff that makes YouTube cool and crazy. I’ve commented before on the expense of this www to store content in drives and the electricity to keep it hot. It costs somebody and that somebody imo is everybody via the standard pass it on way things get done – sorta like tv into your home on 80+ channels. The tech industries are definitly getting a payday out of it. I think they could be charged somehow. If there wasn’t anything worth visiting in the www there wouldn’t be as much call for the tech gear.

    One more time – a testiment and push for a new way to juicing human needs – away from this capway and into something new that we have to invent together in baby steps before we have CivilWar2 or WW3.

  15. Clem Stone Says:

    Instead of charging for uploading videos they should charge everyone who makes idiotic comments on those videos. Yahoo is sitting on an untapped gold mine in this area too.

75 queries. 0.411 seconds.