Current Business Models for Free Online Video As a result of the recent merger of Google and YouTube, which holds a tremendous amount of the current video market, services like free videos, shortfilms or TV-like streams and branded entertainment will provide a free audio-visual experience in future.

Complementing each other's services usually leads to an effective monetization leveraging network effects, in this case I'm thinking of accessing YouTube's community tagged videos and combining them with Google's algorithms and ad-technology.

Shaping a business model based on the idea of a community means to balance the divergent interests of users, artists, the entertainment industry and technology. Current business models for free online video include:

• Contextual, displayed, targeted and linked advertising
• RSS advertising
• Sponsoring and donations
• Affiliate programs and merchandising

I can't say how many people participate in and with videos regularly, but home-made videos are attractive, hype and innovative because they represent a service that would not make a commercial sense from a traditional media point of view.

As a user one doesn't have to care about video standards, just upload a film and the website does the rest for one while using a blog creating an atmosphere sharing video over the Web documenting individual experiences and videos and keeping in touch with friends and family has become one of the strongest growing fields on the Web.

Funny entertaining clips, international TV shows, sports related video clips and home-made amateur star videos dominate the needs of an international audience.

However that attractive user audience loving Internet-based clips and videos they can view, listen, interact with and participate when, what and how they want and technologies standing out by an intuitive and natural user interaction reducing the amount of friction for users to interact with rich media online makes me think if serious online marketing is shifting shift to an entirely new format: Video.

Home-Made Videos invade cyberspace, enter Video Top 100 lists with millions of views showing impressive amateur-made videos, personal mash ups of film screenings and discussion programs and reflect the diversity of culture.

I think the more we zap TV ads, the more important it becomes for brands to integrate products and services into the video programming and deliver an emotional outstanding experience for the audiences.

Labels: networking

  ¶ 'Current Business Models for Free Online Video' posted by eA : 1:23 PM