News: Value of YouTube 'clip culture'? Junk CPMs

News/YouTube/Video/Donna Bogatin
Found on: ZDnet.com





In “YouTube yearly revenue potential: Fred says $150M a year, I say $20M.” Jason Calacanis deflates the latest YouTube fantasia, responding to Fred Wilson’s “YouTube’s Potential Revenue.”

Fred Wilson literally disclaims the validity of the metrics he himself uses to calculate the revenues YouTube “could be generating”:

Let's say that advertisers will pay on average a $15cpm for a ten second pre-roll ad in front of licensed content and high quality user generated content (lisa nova, etc). And let's say that 60% of the videos being served on YouTube are unlicensed content that could be licensed with the right business deal. And let's say that another 20% of the videos being served on YouTube are user generated content that is high quality. That leaves 20% of the videos being served that are not monetizable. I realize these are unsubstantiated assumptions, but my point is not to be accurate, it's to make a point.