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."
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