Commentary

Twofers: What You're Worth and Whether YouTube Is a Good Deal

Two fun stories: 

The “digital video value chain” made a combined $6.3 billion in 2012 revenue, a 38.1% increase for U.S-based companies in the sector, including their foreign ops.

Reportlinker.com says that includes content delivery networks, video ad networks, serving platforms, auction exchanges, real time bidding, integrated video platforms, processing, optimization, analytics and mobile ad networks to name most, but not quite all the categories.      

Globally, the digital video value chain grew 36.6% to $9.4 billion, which shows you what an elephant U.S. businesses are in the category. The U.S. creates 6 out of 9 bucks.

The data comes from AccuStream Research. It’s a 600-page report that drills down to all these businesses, and includes insight everybody coming to the big Video Value Chain Picnic I’m planning.

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That list includes:  Akamai, Limelight Networks, Internap, Level 3, Edgecast, CDNetworks, ChinaCache, Brightcove, thePlatform, Kaltura, DigitalSmiths, Kit Digital, Adobe Auditude, RAMP, Sharethrough, adRise, Tremor Video, SpotXchange, Adap.tv, DG/MediaMind, SET Media, Freewheel, YuMe, AudienceScience, TubeMogul, Buzz City, JumpTap, Madhouse, Mobclix, InMobi, Origin Digital, Encoding.com, Sorensen Media and more. You can either come to the picnic and ask these people stuff, or pay Reportlinker.com $3,495 and read it. Because the picnic is just in my imagination, if you want the data, you’ll have to pay, or get the person in the next cubicle to buy it and just read over his/her shoulder.  

On a global basis, the report says, mobile ad networks, platforms and clearing environments are forecast to capture 29.3% of digital video ecosystem net revenue by 2015, online video ad networks and CDNs at 27%, integrated platforms, optimization and processing 16%.

Interesting thing, number 2:

I always believe insurrections are right around the corner, and here’s another one to keep an eye on. 

The Wrap says some YouTube content providers think they’re not getting paid enough. Jason Calacanis, a influential blog poster, started this nasty line of thinking last weekend when he chided YouTube for taking too large of a cut of his revenue. It caused a lot of buzz at the Influential Blog Club (sorry, not a member), and so at a recent panel, The Wrap says, Electus COO Drew Buckley asked executives who have important product on YouTube is they’re making enough.

Barry Blumberg, EVP of Alloy Digital and president of Smosh, the channel a lot of young guys have made YouTube’s favorite, said no, pointing to the fact that now 65% of its revenues come from other sources—and there have been reports it’s shopping Smosh for TV (at the NewFronts, he hinted to me that a movie was a better route.)

But Chris Williams, chief development officer at Maker Studios, was kinder and told the panel he thinks YouTube will eventually pay more. Then it was reported Maker Studio is thinking of starting a stand-alone channel, while maintaining its YouTube presence.

We’ll see. Like I said, it’s fun to watch the natives get restless. But they are, despite what they might be saying, also getting richer.

pj@mediapost.com

1 comment about "Twofers: What You're Worth and Whether YouTube Is a Good Deal ".
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  1. Darren Davis from Artisan News Service, June 6, 2013 at 3:10 p.m.

    I can tell you as the video landscape on YouTube gets more crowded, partners will be making less. We have had our YouTube-sold revenue cut by 70% because they can't fill the inventory effectively.

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