Content Kinks: User-Generated Videos Losing their Appeal?

By David Farquhar

European Editor

We have been saying for a long time that in the mobile and Internet video world content is king. Just ask the people over at YouTube, who measure the most inane and unbelievably amateur videos in terms of millions of hits, and are starting to get the advertising dollars to support these user-generated feeds.

Unfortunately, if you look beyond the platinum tower and sky-high stock price that is Google (owners of YouTube) you quickly realize that not everyone can duplicate that model and make a buck by creating a video trough of content. Promising young companies have tried and failed to capitalize on the user-generated video craze (and we use that term because it is a fad that will eventually fade) because there is no sustainable interest in the rubbish that is presently passing for clever video content.

Sure, there is the occasional gem, but these examples are far outweighed by clips of snoring dogs, posed 'accidents' and other media mayhem. Also, advertisers have caught on to the attraction of YouTube and are using it to post bogus videos that are nothing ads for products and services. One of these purports to show a guy who flips out at a local coffee shop after 'accidentally' spilling coffee on his laptop computer. In reality, it is a viral pitch for a computer repair shop.

One recent company that tried and failed to go the YouTube route is ManiaTV, which launched in 2004 backed by some VC money and knowledgeable co-founders. The company developed thousands of channels for user-generated content - a good idea since communities are critical to the success of this evolving broadcast medium. But, the channels offered the same old and worn user-created programming available at any URL nook and cranny on the Web. Also, like YouTube, the sources and copyrights for the content was questionable - which raised red flags with advertisers.

As a result, ManiaTV decided to close down shop for a while and re-tool its broadcast model to focus exclusively on quality custom programming and productions - meaning they have pulled the plug on amateurs and are now soliciting professionally-produced content. In August, the company struck a deal with Baeble Media LLC to partner on producing a music content series - called Backstage Pass - that will spotlight New York City's underground music scene.

Will the new strategy work? Perhaps, although we have our doubts that ManiaTV and other smaller players can effectively take the production route and bankroll higher-quality content. By raising the bar, they will also be competing with those in traditional broadcasting, who are salivating at the thought of expanding their network reach and creating links to existing television programming. We do like the idea of the music programming channel, but suspect this is not enough to carry an Internet broadcasting company.

The alternative is for ManiaTV to become a production company and channel their content through existing and bigger channels on the Internet and in the mobile space. After all, wouldn't it make sense to channel reports on the NY music scene primarily to mobile devices - even those a big larger in format such as the Apple iPhone and Nokia Internet Tablet? Most likely, the consuming community for these broadcasts are out and about and would prefer top watch and share updates at a 4am rave in some funky warehouse venue.

We are all learning our lessons when it comes to content, now it is time to play it smart when it comes to viewing communities as well.

Is the Video Pause that Refreshes Due for a Refresh?

Are people watching more online video and enjoying it less? Recent research on the movement would seem to indicate that although Internet-based video and even mobile video watching is on the upswing, there are some very important hurdles to overcome before viewers wholeheartedly commit to these new broadcast mediums.

There is no doubt that online video is becoming increasingly popular and will become more mainstream over time, says market researcher In-Stat. However, some of the key problems facing widespread adoption are download speed, user interface, cost, and quality of video (both visual and content).

This last point is important since (let's face it!) there is a lot of crap out there in cyberspace as video vessels like YouTube and others become virtual troughs for anything that is digital. YouTube may have validated the importance and demand for online and mobile video, the next step is to put some real effort into creating quality digital content that specifically targets communities of people who watch videos on the Internet or are out and about and crave that mobile video fix.

One ambitious effort to raise the bar in terms of creating quality mobile content was recently launched by the Royal Scottish Academy of Music and Drama (RSAMD) in Glasgow, Scotland. The school is the center (or centre, if you are of the UK persuasion!) of film activity in Europe and the world, and now wants to focus on the emerging area of mobile films and broadcasting to mobile communities worldwide. You can check out their early Web site at www.rsamdmobile.com.

(In the spirit of full disclosure, we will admit the effort is aided by Shoreline Media International, which is a parental affiliate of this blog).

In-Stat goes on to note that social networking trends will pay an important role in how the newer generation of digital consumers will watch and interact with TV. We believe that in order to be successful, mobile video must relate to something happening in 'real life' and be closely tied to location. The technology must also not remove you from your life experiences too long, but should enhance those experiences. In short, if mobile video doesn't relate tome and my needs then I will switch channels.

In-Stat points out that as consumers are offered more choice and control when it comes to content (be it PVRs, user generated content, or TV shows online) thee will be an increasing effort to unbundle television/video entertainment and these trends will dominate the video landscape for the next few years. We agree, of course, but caution that re-purposed and 'sliced and diced' content may be interesting for awhile, but is not sustainable and will ultimately not keep or increase viewership.

Our recommended solution: Regard Internet and especially mobile video as the new broadcast mediums that they are and create new techniques and models to develop and distribute digital projects. After all, how many regurgitated versions of Desperate Housewives is this new generation of video consumers expected to swallow?

Finally, In-Stat's surveys reveal that online videos appeal more to the under-25 crowd than older folks. We say, while this may be so for initial acceptance there will be increasing interest by those a little older and fatter in the wallet (remember those aging population demographics!). Older people, who like and are able to travel quite a bit for example, are perfect targets for mobile videos and interactive advertising that relates to where they are in the world and what they want out of a trip. Other prime content areas include education, entertainment and health.

Our wily friends at In-Stat note say in another report that people under 45 years of age are the likely drivers for future growth of enhanced mobile and entertainment services - which means that allegedly youthful pastimes are not necessarily reserved for the young when it comes to online and mobile content.



* "Internet TV Market Strategic Analysis" (#IN0703940TX), In-Stat (www.instat.com)