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« Broadcast TV is Still Important | Main | Why YouTube Wins and Revver Loses »

June 02, 2006


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The hive doesn’t participate because they’re getting paid, the hive participates because it likes to hear the buzz of the crowd.


People aren't going to pay for videos just because the quality is better. People expect things to be free on the Internet.

YouTube and othes have no choice but to get revenue from ads. Reports say that bandwidth alone for YouTube is costing anywhere from $500K to $1M a month. Venture capital money will only pay for that for a short time.

You can't have your cake and eat it too. Something's going to have to give here.


I couldn't agree more Alex. On-demand and subscription based downloads of hi-res, high quality video is going to be a major revenue opportunity for video sharing sites. They can't afford to slow down the "instant gratification" experience of their low-res, streaming video chucks with in-stream ads. Kudos to YouTube for resisting the temptation and so called viral advertising experts. As the DVD and digital music market have proven, people want to "own" (and are willing to pay a fair price for) a high quality copy of content they love.

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