Dear online video sites. Thanks for giving us free access to online videos, as well as absorbing the costs of hosting and serving the videos. Unfortunately, that's become a commodity. I think you know this, but in case you don't… what attributes do you need to ensure that you're not a "Pets.com" of the online video space? Don't read ahead… name a few. Now scroll down.
If you want to succeed in this space, you need most of the following attributes:
- Lots of traffic and viewer loyalty
- Nice organization of content, and community/social networking doesn't hurt
- Partnerships with content creators- content is still king
- Relationships with large media players- they're going to eventually buy you
- Transparent revenue sharing with content owners- amateurs or media houses
- An attractive offering to advertisers (who will demand traffic)
- Something to differentiate from the increasingly crowded space
- Distribution channels beyond your site (like cable, networks or cell providers)
- Deep pockets (venture capital) to get out of the Catch 22 most won't escape: you need visitors for ad revenue, and ad revenue to support visitor generation
You know what I just realized? Some jackass consultant is going to rip this off and make money on a white paper about this rapidly growing industry. Oh well. At least I'm not making any money from this blog.