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Bright $4.3B Future For User-Generated Online Content

The results are in and analyst projections of U.S. user- generated content sites earning $1 billion in 2007 and hitting $4.3 billion in ad revenues in 2011, pose a bright prospects for the future. Leading the charge? Likely video-based content sites.

The projections coming from eMarketer Senior Analyst and the author of “User-Generated Content: Will Web 2.0 Pay Its Way?” Paul Verna.

Paul projects that YouTube, MySpace and Facebook will led the content change.

Another projection: “On a global basis, user- generated content ad revenues will increase from $1.6 billion in 2007 to $8.2 billion in 2011.”

Which has pundits reinforcing the “It’s about the content, stupid” mantra.

Arrayed against this are Asia-based telcos railing against Web 2.0 applications choking up the submarine cable bandwidth. [Has Web2.0 Broken The Internet?]

If the bandwidth bottleneck doesn’t get resolved soon, it’ll turn out to be a profit bottleneck for content providers.

Already on the horizon are other developments like:

MySpace TV Set To Launch” with a new service (www.myspacetv.com) set to launch to cater to MySpace’s burgeoning 110 million visitors a month. In the pipelines: Intensive efforts to integrate videos more closely into profile.

And WebProNews reports: “We saw a clue to this development with the introduction of “minisodes” on MySpace; minisodes, as conceived by MySpace, Sony, and Honda, were shortened versions of classic TV shows. MySpace TV will also focus on clips that are more professional in nature. “When you go to MySpace video now, what you see is far less appealing to the eye than what you get from other video sites,” admitted MySpace exec Jeff Berman.”

Is MySpace gearing for a major face-off with YouTube? More importantly, does it have a fighting chance? Stay Tuned…

In the wings we have “YouTube Crushes All Video Competition” with the video sharing behemoth YouTube accounting for “A 60 percent market share that is 50 percent greater than the next 64 video sites combined (which) makes for a dominant position in the online video industry.” according to Hitwise research director LeeAnn Prescott.

I agree.

Incidentally, MySpace Videos picked up 16 percent market share in second behind YouTube; and Google, Yahoo, and MSN Video rounded out the top five, respectively.

MSN Video? I wasn’t aware MSN has a video service…

Is video in the future? Certainly, but I think a lot of the buzz surrounding it now has to do with the fact that it’s the new kid on the block.

Remember back when Mirabilis’ ICQ was the hotshot application and now IM clients are de rigeur?

Remember when only the uber rich has cell phones and now your average joe might own two or three of them?

Video is in the cards and the cards already show that user-generated content is the way to go.

As Time magazine pointed out, the (content-generating) person of the year is “You”.

3 comments on Bright $4.3B Future For User-Generated Online Content

  1. The Geeky Blog
    July 2, 2007 at 1:58 pm (4894 days ago)

    Very nice article, makes me think so much more about all the video niches out there and how easy some of them are to hack into with a little bit of SEO knowledge and link building I think they will become increasingly profitable as time goes on.

    Its amazing how much of a jump Videos and User-Generated content will see by 2011, a 7 billion dollar increase in only 4 years, it makes me even more curious to figure out whats next after Videos, who knows maybe all the money that these companies make will end up accelerating the advancement of true Virtual Reality at which point I believe billions could very well turn into triple digit billions.

  2. Andrew Wee
    July 2, 2007 at 3:04 pm (4894 days ago)

    >> whats next after Videos

    How about interactive videos.
    And transactional videos?

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