Even Google, the King of the internet Jungle, in their quest cannot find what it’s looking for.
Back in the news is YouTube’s woe’s and shortcomings as a business. According to the Wall Street Journal [article,](http://online.wsj.com/article/SB121557163349038289.html?mod=2_1571_leftbox) pressure is back on as Eric Schmidt, Google CEO voices his dissatisfaction with the lack of cash being generated. As a result plans to begin accepting “pre-roll and “post-roll” ads are rumoured which will run before and after on Youtube video’s.
If this plan does go ahead the viewers reaction will be no different, as I suspect, to the reaction received when they tried this a few years back. Youtube was founded on free & ad free content. That’s why we watch it. For me, as soon as I see an ad I’m a gone. I have a very low tolerance for ads on internet video, and this is a cultural thing most of us share. It simply boils down to the precedent of ,free content with no ad’s, originally set when YouTube opened up in 2005. The vzaar founding principle is that the (http://vzaar.com/videos) is the ad and this is why we don’t offer pre roll and post roll ads.
Google recognise that their UGC content is not monetise-able as advertisers won’t touch it with a barge poll. Therefore, according to the Wall Street article, Google will only sell ads against YouTube clips approved by media companies and other partners. Interestingly, this represents about 4% of the total content on their site . Earlier this month, Youtube [announced ](http://digg.com/tech_news/YouTube_hits_one_billion_views_a_day)that is serving more than 1 billion page views a day. What they have not disclosed is of that “safe” 4% how much activity or views are they getting in relation to the “unsafe” UGC content. Whatever it is I am sure it will decline once ads are served.
I do find their predicament interesting and I am sure one day they will figure out a solution as they cannot just keep losing money forever….or can they?
Got any bright ideas or comments on how they can or should look to generate revenue?
I’d love to hear your views.