Last week EQAL, creators of original web video content, announced it wasn't going to produce original content anymore, but rather, create content around existing TV shows that have a built-in audience (and advertising). The annoucement spawned several articles last week written about the current state of web video (See, PaidContent.org, Los Angeles Times). And today, Ripe Digital announced it's shut down, the most recent shakeout. The bottom line is that web video is going through severe growing pains and a typical maturation process. '60 Frames' recently shut down, as did Disney's 'Stage 9', as did web series that were developed by NBC, HBO and AOL.
So what's wrong? I think it's timing, once again. Remember BMW Films back in the late '90s? It was too early then, and it's still early (although America was introduced to Clive Owen--alas, I digress).
But for every web video studio that has shut down over the last two years, the reasons for doing so have been varied. One common issue for all of them--a lack of ad dollars. Pure and simple. Many believed advertisers would come running, but they didn't. Other factors impacting the fragile state of web video include, an oversupply of content, the recession, a lack of metrics with insight into who the audience of a given web series really is, a fragmented market, and some would argue that the brand itself is part of the problem.
So what's the solution? Well that's the million dollar question, ne c'est pas?! One thing is key. Content creators need to build audience and have a distribution strategy. How do you do that? Find and target your audience. Locate them online then engage them, get them involved in your content and create an emotional attachment that fosters their loyalty. Content with a loyal following will eventually attract advertisers.
If you can find a way to integrate an advertiser (aka a brand) into your content BEFORE production, while still focusing on creating entertaining web videos, a brand's involvement in developing creative video content ancillary to its own product will make them rise above the 'noise'. When content creators and brands have produced compelling content together, as Christine Beardsell puts it, "people will be more willing to friend, follow, tweet, digg, or push whatever that button is to connect a brand to their world and friends" I agree--both the content creator and the brand will find their audience. Producing web video this way will also allow content creators to tap the brand's existing market of loyal customers (the built-in audience). By producing web video this way with advertisers, content creators have sponsorship opportunities at the development/pre-production stage which helps covers production costs. Producing original content first, then trying to find a brand fit, is risky. Hence, all the web video studio shut downs. However, EQAL is now on the right track with the company’s new project with TV chef Paula Deen.
Overall the industry is still in its infancy and the strategies and business models are all embryonic. These are growing pains we're seeing manifest before our eyes, but the gestation period is necessary. I know, enough with the pregnancy references, you get the picture.
Tuesday, January 12, 2010 at 09:00PM