YouTube content offers business income dilemma: divided into inexpensive

Although YouTube has a good outlook, its set-aside revenues are too high, leading to less revenue for content providers, and other companies have had to look for alternative ways to boost their revenue, which is not conducive to the development of the video site, AllThingsD, a technology web site, wrote recently.

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YouTube's big picture looks good. The world's largest video site is growing, video browsing continues to improve, and more and more advertising revenue.

For some of YouTube's biggest program partners, the road ahead has become even more vague. Their browsing volume is also increasing. But YouTube's advertising revenues for their programs have not kept pace.

In the short term, this will lead to many large YouTube program networks and partners trying to find new sources of revenue. The bigger question is whether YouTube can generate enough advertising revenue for content producers to support the "quality" programs it has been trying to attract, which it hopes to confront with traditional television stations.

Steve Raymond (Steve Raymond), head of Big Frame, a YouTube program network and production company, has received 3.2 billion video views. "Given YouTube's low (revenue-splitting) figures and the lack of a marketing infrastructure to boost quality programme value, [YouTube] is hard to achieve," he said. ”

The percentage of advertising revenue that producers get from YouTube varies. But many big publishers say that after YouTube has taken 45% of its advertising revenue, its video will only get about 2.5 dollars per 1000 visits, meaning that if their videos produce 1 million views, they'll get 2500 dollars. Other publishers said they could only reach a maximum of 10 dollars per 100 views.

These ratios were supposed to rise a year ago, in part because YouTube has repeatedly attracted attention, hoping to create an ad-friendly "channel" that pays millions of of dollars in advance to producers such as big frame to produce exclusive programmes for the site. Last May, the site held a gorgeous Brandcast event in New York, inviting celebrities such as Jay to transmit an idea to marketers YouTube should get an ad budget like a TV channel.

However, according to YouTube's internal and external sources, the site last year left a large number of advertising booths, resulting in greater pressure on advertising rates.

Last fall, YouTube was the first to introduce YouTube space to top producers, a gorgeous studio created in Los Angeles, where many companies have taken the opportunity to grumble about YouTube. One participant said: "Everyone in the entertainment industry complains to Alex Carloss, head of the YouTube content business: ' We're not making enough money '" Alex Carlos.

At the end of last year, YouTube, which focused on video games, machinima a new contract with a number of video sellers, and gave up its cooperation with some companies. The problem, according to people familiar with the matter, is that the company has assured video-production companies that the amount paid exceeds the revenue earned from YouTube.

Now machinima, like other large YouTube producers, is seeking to increase its YouTube ad revenue by selling some of its programs by subscription. Maker UBM is another large "multi-channel program network" seeking to boost revenue through alternative sources of revenue and other strategies, such as itunes Music sales.

A number of big producers are also concentrating on selling their "proprietary" parts to advertisers, where celebrities talk about or use products that sell companies, because they don't need to be part of the deal with YouTube.

For example, some companies such as Vice Media are trying to find supporters like Intel to get the money even before the video lands on YouTube. Vice Media chief executive Shahn Smith said: "It is more difficult to pursue commercialization while reaching the scale." "The company plans to run 12 channels for YouTube this year, and recently announced that it has received 1 million subscribers to the site." Mr Smith points out that relying on YouTube to create advertising revenue "is not our commercial strategy."

Other companies are trying to redirect YouTube traffic to their sites. Last year, Freddy Wong launched the portal RocketJump, where he and his supporters hope to earn more from their films.

Video makers who control their own websites say they usually generate more than YouTube revenue, and CPM or ad rates are 20 dollars per thousand browsing.

This is partly because they can provide advertisers with a lack of additional content on YouTube, such as the skin of a website with an advertiser's trademark. But YouTube critics say independent sites can do more than YouTube because Google does not own a separate YouTube sales team; instead, the video site's promoters include all of Google's salespeople, like search ads and other products.

"They did not set 100% dedicated and 100 training employees to do this sales. It's that simple, "says one video industry executive. "No one on YouTube thinks it's the right way to sell video," he said. ”

YouTube producers also complain that Google's salespeople are not inclined to sell separate programs or channels, but rather focus on the wider "audience" purchase.

This is good news for Google's revenue, but not for individual programs. Mark Pavia, head of digital business at the media store Starcom, points out that this is also an interesting aspect for some advertisers, Mark Pavia. "The model they're trying is not for advertisers," he says. ”

Google executives say they have no plans to overhaul the way YouTube is sold. But they expect things to get better.

Until last fall, for example, YouTube barely made money from video browsing on its mobile phone, which now accounts for One-fourth of the site. Now, after the YouTube app is back in the Apple App Store and the Android app is restructured, some of the browsing has generated ad revenue. If international traffic is to be improved, it will take a long time.

Here's a comment from Robert Kyncl, head of the YouTube content business, who pushed the Web site's "sponsored channel" strategy: "A key part of the development of this platform is the open advertising booth, which allows more partners to succeed in pursuing commercialization of their content," Robert Jinke. This may cause CPM to fluctuate in the short term, but in the long run it is good for a partner ecosystem. We anticipate that, driven by this measure, the amount of browsing, revenue and subscriptions for partners will increase. ”

Some investors are betting that YouTube will find the right solution, and that producers will eventually build as precious an asset as today's cable channels. In December, Time Warner served as a maker in the 36 million dollar financing of UBM. Last week, Bertelsmann invested in another multi-channel YouTube network.

YouTube will again try to get more advertising revenue in May, when the site will again host a marketing campaign in Manhattan. Starcom's Pavia hopes the site will adjust its marketing approach this time. "We have very large advertisers who believe in online video. YouTube has the ability to solve the problem if you want to. ”