Comments on: UGC – Just Anoter Loss Leader. Ask YouTube…

By: Gary

Gary — Wed, 17 Feb 2010 11:55:50 +0000

Why does my video start and stop. Its like it pauses itself then starts up again. What can I do to correct this problem. Please help! TKS!

By: Yuval Adam

Yuval Adam — Tue, 25 Nov 2008 11:59:20 +0000

Kfir
They raise a good point. There are places where UGS is making money. The problem is with video being more expensive. I belive that this will also change. Not so long ago we were staring at web browsers for 30 seconds to see a 50kb jpg image.

By: Kfir Pravda

Kfir Pravda — Mon, 24 Nov 2008 12:44:33 +0000

@Guy, @ Tsahi – you are right if we are not talking about video. But video changes the game. Video is a double edge sword: on the one hand it is expensive to deliver, and on the other hand, it’s CPM is much higher than text and banners. So, a site that is based on UGC video, has a major issue with balancing between reach and revenues. If YouTube can’t monetize their expensive to deliver videos with video CPM, what is their case? Nothing besides ads on pro content. Which means that they use UGC as a loss leader – cause they are spending loads of money on it.

By: Tsahi Levent-Levi

Tsahi Levent-Levi — Mon, 24 Nov 2008 12:36:31 +0000

I must agree with Guy on this one.
Especially if you look at UGC that is not video-centric.
Flickr which does photo sharing builds upon pro accounts to its site, while they could try monetizing through advertising.
Stackoverflow.com does a kind of a forum based developers Q&A. They monetize through very limited advertising. While it probably doesn’t bring much money it also doesn’t cost a lot to host (text only).

By: Guy Bendov

Guy Bendov — Mon, 24 Nov 2008 11:59:51 +0000

UGC is a content model, not a business model.
UGC create traction and traffic momentum based on the fact that content items are personal, “non biased” and add falvor to a core “commercial” items ( see tripadvisor.com ) .
Business model is what makes money. IE Adverts, items sales, subscriptions, lead sales.
In that sense, UGC is a good way to keep your traffic alive as you grow. It is a bad way to start (without the core content people would not come) and a bad way to become huge. At one point when you are very big, you need to become main stream, like Youtube, and bring main stream content (like the movie studios).

By: Or-Tal Kiriati

Or-Tal Kiriati — Mon, 24 Nov 2008 10:07:07 +0000

Well, Kfir, these are some interesting pointers.
However, UGC has many faces. Not only the Youtube face.
Sometimes you can take the UGC and dress it or direct it towards a more professional outcome. Either by guidance or by screening the users, simply by creating a site that is aimed at a unique group.

By: kfirpravda (Kfir Pravda)

kfirpravda (Kfir Pravda) — Mon, 24 Nov 2008 06:58:24 +0000

What’s your opinion on the future of UGC? http://tinyurl.com/5s3pvv

By: kfirpravda (Kfir Pravda)

kfirpravda (Kfir Pravda) — Mon, 24 Nov 2008 06:58:24 +0000

What’s your opinion on the future of UGC? http://tinyurl.com/5s3pvv