Comments on: Report: User-Gen to Only Ever Account for 4% of Video Revenue

By: Study: Users Don’t Want Ads on UGC « NewTeeVee

Study: Users Don’t Want Ads on UGC « NewTeeVee — Thu, 24 Jul 2008 19:45:41 +0000

[...] come under fire lately. The Diffusion Group recently found that UGC video will only account for 4 percent of online video revenue for the next five years. That same study predicted that CPMs for UGC vids would grow at a paltry [...]

By: Video Ad CPMs: It Pays to Be a Pro « NewTeeVee

Video Ad CPMs: It Pays to Be a Pro « NewTeeVee — Wed, 23 Jul 2008 20:27:30 +0000

[...] written before that UGC is expected to account for 42 percent of all streams but only get 4 percent of the video [...]

By: Jeremy Campbell

Jeremy Campbell — Mon, 14 Jul 2008 16:18:27 +0000

I agree it's hard to define what is user generated, and what is professional or semi professional content. There are some clear cut examples but there is a blurry section right in the middle that's the main problem.

Is user generated considered to be content that only has value to its creator's close networks? Does it need to have a certain level of production and entertainment value to be considered premium content? Does a budget of $0-$100 mean it's user generated, and professional content has significant production budgets? These are just a few of the many questions that need to be answered.

There needs to be some solid research showing exactly what is considered to be user generated video content so that site publishers, creators, and advertisers know the rules and guidelines to this new and emerging game.

By: Online Video & Web TV News Roundup: July Edition : Videos and web TV

Online Video & Web TV News Roundup: July Edition : Videos and web TV — Sat, 12 Jul 2008 09:26:27 +0000

[...] research on user-generated content shows that User-generated video will account for 42% of streams this year, but only 4 percent of online video revenue, according to an upcoming study from The Diffusion [...]

By: HipMojo.com » UGC: Lots of Hype, 4% Substance

HipMojo.com » UGC: Lots of Hype, 4% Substance — Sat, 12 Jul 2008 01:21:06 +0000

[...] From the Diffusion Group, via NewTeeVee. [...]

By: July 11, 2008 | next media update

July 11, 2008 | next media update — Fri, 11 Jul 2008 20:42:58 +0000

[...] Report: User-Gen to Only Ever Account for 4% of Video Revenue NEWTEEVEE User-generated video will account for 42 percent of streams this year, but only 4 percent of online video revenue, according to an upcoming study from The Diffusion Group. Conversely, professional online video will account for 58 percent of streams and 96 percent of revenue. Those trends are expected to hold for the next five years. Source> [...]

By: Liz Gannes

Liz Gannes — Fri, 11 Jul 2008 20:30:34 +0000

Thanks for the excellent comments. If you have any more questions for TDG, let me know, as I’m talking to them later today.

By: Eric Susch

Eric Susch — Fri, 11 Jul 2008 19:44:11 +0000

The big question is how is "User Generated" and "Professional Content" defined? Is it defined by quality?.. how big a corporation made the video? Can these two things even be separated?

For example, I consider our show at LetsKnit2gether.com to be professional content because it's high quality and we intend it as a business. But we're a very small company and CAT (our host) is actually a knitter and not an actor.

On the other side of it, what about the videos made by big ad agencies that are promotion or ads themselves that are shot to look like UGC? Which category do they fall in?

I think there's too much gray area in online video to separate it into these specific categories. I'm looking forward to the complete report to see what it actually says.

By: Tom Wilde

Tom Wilde — Fri, 11 Jul 2008 19:06:28 +0000

This is the reality of UGC. UGC will ultimately become what instant messaging is. A ubiquitous portal-like utility that everyone uses, but no one makes any money from.

By: Nakul

Nakul — Fri, 11 Jul 2008 16:30:26 +0000

Do you know if these stats (42 vs 58%) measure the streams in absolute terms or in viewing time? When YouTube says 96% of its videos are UGC, i'm a bit surprised at how this report pegs the professional content at such a high proportion.

I'm curious to know projections on how total hours viewed shifts towards professional content as more of it comes online. Presumably ad effectiveness is much higher when related to prof content so ad $/hr viewed is much higher as well.

By: david carson

david carson — Fri, 11 Jul 2008 15:44:00 +0000

Great post, Liz. First time I’ve seen this kind of breakdown. Any chance you’ll post the entire study?

By: Content is King « Perpetual Motion

Content is King « Perpetual Motion — Fri, 11 Jul 2008 14:19:52 +0000

[...] old king, Content, seems to get another boost from an upcoming study by The Diffusion Group. As reported by NewTeeVee… “User-generated video will account for 42 percent of streams this year, but only 4 percent of [...]

By: David Mullings

David Mullings — Fri, 11 Jul 2008 14:04:59 +0000

I don't think anyone would say UGC revenue will be fixed at 4% but no one should be surprised. The advertisers have been very loud and clear that they cannot find enough quality content to advertise alongside when it comes to UGC video.

UGC is still in it's infancy and just like how the quality improves over time for any market, there is a long road ahead.

I admit, my venture focuses on professional content and semi-professional UGC content because I need to earn revenue ASAP, not burn my money.

(I am CEO of Realvibez.tv)