User Generated Online Video: 55% of Online Video, but Only 15% of Revenue by 2010: Screen Digest

By 2010 more than half (55%) of all the video content consumed online in the US will be user generated, representing 44 billion video streams, but the user generated videos will make up just 15% of total online video revenues, according to Screen Digest.

The user generated online video market (UGOV) exploded in 2006 and by the end of the year, user generated videos made up 47% of the total online video market in the US. 

In the US ad revenues will grow from $200 million in 2006 to almost $900 million by 2010. This represents only 15% of all online video revenues.

According to Screen Digest, there are five business models currently being used to make money from UGOV:

  • Advertising
  • Content Licensing
  • D-Commerce (digital sales and rental of premium movie and TV content)
  • Subscriptions
  • Technology Licensing

YouTube and MySpace videos dominate the online video sites in U.S., while Europe is seeing many sites extend their offering of local language sites and fresh initiatives from the likes of MyVideo, Clipfish, Daily Motion, Yoo tribe, Wideo and Flurl Media in Britain, France, Germany and Belgium.

"UGOV sites need to diversify to survive. With the dominance of YouTube and MySpace Video, smaller sites are going to need to offer something different. Emerging alternative offerings include online editing, revenue sharing with content producers and hybrid services which offer both premium and user generated content." says Screen Digest.

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