Andrew Chen

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Where are all the video startups? Maybe Content=King, online and offline

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I ran across this interesting diagram from comScore on the top video properties online:

Top U.S. Online Video Properties* by Unique Viewers
April 2008
Total U.S. – Home/Work/University Locations
Source: comScore Video Metrix

Property

Unique Viewers (000)

Average Videos per Viewer

Total Internet

134,471

81.6

Google Sites

83,720

49.7

Fox Interactive Media

52,046

10.7

Yahoo! Sites

37,323

9.4

Microsoft Sites

29,908

9.0

Time Warner – Excl. AOL

20,627

6.7

Viacom Digital

19,367

10.3

AOL LLC

19,115

5.0

Disney Online

10,805

9.1

ESPN

9,026

9.2

CBS Corporation

7,993

7.1

My first thought was… why are there no startups on this list? YouTube is the closest, and obviously they are dominating, but how about all the other folks?

A theory on this is that most startups have focused on aggregating long-tail video online, and displaying it as a "content site" similar to YouTube. That is, one would focus on just aggregating and displaying content, rather than building too much complexity on top of it.

Compare this strategy to the one employed by many of the top media companies listed above – they are taking their wells of proprietary content and posting it online, and mainstream content is able to drive traffic with or without surrounding featureset. If you check out ABC.com or many of the major network sites, they don't do anything fancy – just post the content in Flash and off you go. It really makes you believe that content is king, both online and offline.

Written by Andrew Chen

June 17th, 2008 at 4:02 pm

Posted in Uncategorized

  • QDub has an interesting point. People only remember a couple brands for a given product. In the current model, people associate shows with a particular network. That being said, if most people map a website to a tv channel, then his argument makes sense. What it also tells you, however, is that other video sites could be in trouble if that is the positioning that users are comfortable with.

  • The future is in vertical destinations for vid aggregation. Much easier ability for users to find interesting content and much easier to deliver relevant ads.


    You'd think someone would have learned something about online vid monetization from porn?

  • It seems like there is only room for one site for UGC. It may make sense: UGC is numerous and disorganized, and having more than one source can be overwhelming. In fact, I'd say people still conceptualize bodies of video content interns of "channels" or "networks". They're probably thinking "oh Soporanos is on HBO, Heroe's is on NBC, AnimalPlanet is on Discovery, and all the UGC stuff is on YouTube"


    The key here is that people are dividing content by type, not the surrounding feature set or "usage model". That could be important guidance for how a video startup might try to differentiate itself.

  • Andrew Chen

    It actually looks like it's not the sum - I think people just end up watching a bunch of different videos from sites on this list and off this list, and it aggregates into 80+. From the article: "Nearly 135 million U.S. Internet users watched an average of 82 videos per viewer in April. Google Sites also attracted the most viewers (83.7 million), where they watched an average of 50 videos per person. Fox Interactive attracted the second most viewers (52 million), followed by Yahoo! Sites (37.3 million) and Microsoft Sites (29.9 million)."

  • RonDiver

    Fix the Total Internet row to reflect the average videos per viewer overall. It currently shows the the sum of the averages.

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