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diff --git a/wired/old/published/Webmonkey/Monkey_Bites/2007/01.29.07/Mon/youtube.txt b/wired/old/published/Webmonkey/Monkey_Bites/2007/01.29.07/Mon/youtube.txt new file mode 100644 index 0000000..64ce1b6 --- /dev/null +++ b/wired/old/published/Webmonkey/Monkey_Bites/2007/01.29.07/Mon/youtube.txt @@ -0,0 +1 @@ +People who upload their own movies to YouTube will soon get a [share of the ad revenue][1]. As we mentioned in the Morning Reboot, YouTube's Chad Hurley let slip this weekend that a revenue sharing program is in the works (see video after the jump).
What remains unclear is exactly what form the revenue sharing will take, the [BBC][3] reports that one of the options might be pre-roll ads, but hopefully that won't be the case. Arguably one the keys to YouTube's success thus far is that they have eschewed in-stream ads.
But lack of compensation has driven many YouTubers to turn to competing services like [lonelygirl15][5], who now posts on both YouTube and the monitized site Revver.
Sites like [Revver][4] and [Metacafe][2] have differentiated themselves from YouTube primarily by offering compensation for content creators, but with YouTube jumping in the revenue sharing game they may lose their appeal.
Revver shares in-stream ad revenue with users and Metacafe offers Producer Rewards which functions in much the same way. Metacafe manages to set itself apart from YouTube a little bit more by reviewing and filtering content and catering more toward semi-professional video producers.
As Arik Czerniak, co-founder & CEO of Metacafe says, "a 5-minute clip of your toddler's birthday isn't going to make it to Metacafe's site but it will sit on YouTube."
Czerniak says that the challenges YouTube will face lie in finding the content that will make advertising dollars. There's also the issue of exposure, which can be hard to come by on YouTube. How do you stand out and earn revenue when there's already a million existing videos of backyard ninja stunts on YouTube?
Then of course there's the copyright issues, if users are able to monotize copyrighted clips of the Simpsons you can bet the lawsuits are going to come crashing down. Presumably YouTube plans to address the copyright issues before it goes public with the new revenue sharing service.
Metacafe's Czerniak isn't worried about YouTube's planned sharing model. "You have to market and promote your own video to get noticed and it's very easy to get lost," he says. He believes that Metacafe's reviewed content model offers a better solution, "if your content is good, it will rise to the top."
Much like Czerniak's vision of Metacafe, the most financially viable of these sites will also likely rise to the top, and only time will tell which one will come out ahead.
[2]: http://www.wired.com/news/technology/0,72022-0.html?tw=rss.index "Runner-Up Takes on YouTube"
[3]: http://news.bbc.co.uk/1/hi/business/6305957.stm "YouTubers to get ad money share"
[5]: http://www.wired.com/news/wireservice/0,71780-0.html?tw=wn_tophead_6 "Piercing the Veil of Lonelygirl15"
[4]: http://www.wired.com/wired/archive/14.05/networks.html "Wired Roundup of video sharing sites"
<object width="425" height="350"><param name="movie" value="http://www.youtube.com/v/JlYtu63_uDE"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/JlYtu63_uDE" type="application/x-shockwave-flash" wmode="transparent" width="425" height="350"></embed></object>
[1]: http://hosted.ap.org/dynamic/stories/W/WORLD_FORUM_YOUTUBE?SITE=WIRE&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2007-01-27-10-10-20 "YouTube to Share Revenue With Users"
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