Next round for user generated content

Posted on: December 11, 2008

Ok, so far I almost always ruled out user generated content to ever become a threat to traditional media.

Today we know that people are spending more and more time on the internet and that various social filter allow us to find relevant content without a problem. If many of us do just that, even the most diverse tastes will form reasonable audiences. Let’s assume that English will soon become the dominant language on the internet, any producer of content will soon be able to reach a critical mass of viewers. In this scenario, we might see a shift in the advertising industry. Rather than paying big bucks for blockbuster airtime, advertisers might pay less, but in larger numbers, for smaller more diverse interest groups.

As this article shows, there is already evidence of this.

via YouTube Videos Are Pulling in Serious Money –

Mr. Williams, who counts about 180,000 subscribers to his videos, said he was earning $17,000 to $20,000 a month via YouTube. Half of the profits come from YouTube’s advertisements, and the other half come from sponsorships and product placements within his videos, a model that he has borrowed from traditional media.

If that is the future, the implications for my career path are tremendous. Bertelsmann heavily relies on advertising revenues that are defined by mass audiences attracted by television and magazine content.

Anyway, I see it as a challenge and opportunity to try new ideas. Let’s see what happens.


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