By Brett L. Sappington, Director of Research
A growing trend in online video, driven by YouTube and other online video sites, is a move towards channelization of Internet video. One of the most difficult aspects of using online video is discovery and scheduling. With online video, consumers have to search for interesting content whereas broadcast or cable TV gives us a tidy little (or not so little) schedule of programs, making it more predictable. Consumers really like easy and predictable.
The key to successful channelization will be for an Internet channel to consistently schedule interesting new content. Herein lays the challenge. I don't know about you, but the fun and interesting online videos that I see come from all over...but rarely from just one source. So, someone has to parse through the 99.99% of what I don't want to see and consistently find (and get the rights to) the 0.01% of Internet content that I do want to see.
Also, Internet video rarely has a regular release schedule. I suspect that popular Internet video production sources will produce a great video every 2-3 weeks or so, and not on a set schedule. If online video producers were to hustle content to market more quickly, their content is likely to not be as good (rushed) and their production expenses are likely to increase.
Professional content producers will only offer channels online if they are adequately monetized by advertising. This advertising aspect is why YouTube/Google partnering with content companies is so scary. YouTube can potentially deliver the ad revenues that content companies seek. If they do, we will see an interesting new world in content services.
Twitter ID: @BrettsView