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Original Web Video Still Financially Underwhelming

Original Web video is still mostly a bust, says Silicon Alley Insider's Dan Frommer. Americans may have watched 14.5 billion online videos in March, according to comScore, but the top videos were undoubtedly clips of professionally produced content. So far, there simply aren't that many Web-original hits -- and no Web producers are striking it truly rich yet.

According to YouTube, by far the most popular online video destination, "hundreds of YouTube partners are making thousands of dollars a month," but most YouTube producers still can't quit their day jobs, Frommer says. Take FunnyOrDie, producer of "The Landlord," one of the most successful original online videos of all time: it has yet to find another hit, with its next-best video generating 1/6 of the views. Even Revision3, "arguably the most successful Web-first production shop," will be lucky to do $10 million in sales this year, Frommer notes. This doesn't even come close to comparing with TV.

"Someday, we suppose that someone will figure out the right combination of original Web video content and sponsorship that mints money," Frommer says,"but despite a lot of investment, the Web-original video production industry is still financially underwhelming."

Read the whole story at Silicon Alley Insider »

1 comment about "Original Web Video Still Financially Underwhelming".
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  1. Karl House from DECA, May 12, 2009 at 5:49 p.m.

    One of the same challenges that faces television is also faced by web video: scripted comedies and dramas are low probability ventures by nature. Only a small percentage of scripted dramas and comedies ever make it to air on television; an even smaller percentage of those actually make it through a full season and are considered a success. Why do some producers think that because they are distributing their content online rather than on TV, that their chances for success are increased? They aren't!

    DECA.TV uses a different model and it seems to be working!

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