I had a meeting the other day with the director of branded entertainment for a major production company and this topic came up and is something that I have been thinking about for quite some time throughout my research on web series and during the development of OzGirl. Where does the value lie? With the content or with the website?
Let me break it down – there are two components to web video – the video content and the website/player. OzGirl is currently playing on Bebo, we have over 20, 000 subscribers at the moment, but we don’t own the Bebo website. We don’t own those subscribers and don’t have *direct* access to them. But we have built a relationship with them on Bebo’s open media platform using their social tools. They have provided an incentive for us to invest in their site because they have the userbase with the right demographic for our show. So who has the upper hand? Who “owns” these users?
Traditional media players will tell you Bebo. On paper they have the traffic. They have 1.8 million uniques a month, and of course are able to attract major advertisers in this market because of the constant flow of traffic. I will argue though that the value lies in the brand and the relationship content creators establish with their audience. OzGirl and all the other shows on Bebo, YouTube and MySpace are providing engagement and retention for the sites. That’s right – without the content creators none of these media based sites have a reason to be visited.
To make money on the web you need to set up your website, create traffic and sell advertising against it. Right? Yes – but of course you need content. YouTube is making millions of dollars off of content they don’t create or invest in AT ALL.
When the industry matures what will eventually happen is content aggregators such as YouTube will bid on content just like TV shows and cinemas do (yes, theatres bid on every film). Within the current state of the industry content creators are somehow expected to continue to churn out content and hand it over to aggregators (aka distributors) for free without any compensation. This must and will change. I don’t believe the web video model is vastly different from the cinema distribution model.
I also believe that the value is in the brand and franchise you establish. Take ‘The Guild’ for example, which started on YouTube for free. It garnered hundreds of thousands of views, if not millions and is one of the most popular web series of all time. Season 2 saw Felicia Day (the creator) sign a non-exclusive deal with Microsoft which gave them a 4 week advance in episodes to be played on their platform. Felicia had already established ‘The Guild’ as a brand. She built a loyal audience who were willing to follow her around. The same thing happened with LonelyGirl15 as they switched platforms from Revver to VideoEgg and eventually to their own custom platform (which sucks but that’s another story).
The content aggregators are not currently giving the creators their due credit. I think they are taking them for granted. It’s the creators who create engagement and the experience for the users. Not the platform. Yes in cases like Bebo they manage an underlying social network site, but do you think without Bebo’s Open Media Platform and Media-centric business plan users would stick around for the social networking features? My guess is no.
In my dealings with some of these tech companies I have found some of them to be quite arrogant and ignorant of the fact that it is shows like OzGirl which will enrich the user experience of their websites. So before I go off on a tangent I should conclude this part by saying I believe that, in the same way the film studio system is set up, content creators and content aggregators and platforms are completely co-dependent on each other. This isn’t the way the aggregators run their businesses now but it will be.
So this leads to the question:
Does Exclusivity Work?
No. Not on the internet. When a movie is playing, where do you go? To your nearest cinema. You expect it to be playing there. And you have every right to. What if I told you that you could only go to one cinema to see that movie because the movie makers decided that in order to maximise their profit, they would build their own cinema and get everyone in the country to drive up and pay to see their movie.
Ridiculous isn’t it. Yet content creators still want to build their own communities from scratch. It’s plain stupid. You need to go to where users are already, where they spend their time and interact. I spend a few hours on Facebook and Bebo every day. That is my habit and routine. If a web show told me I had to visit their own website to watch their show I’d tell them to piss off. Because I want my content where I want it, when I want it and how I want it. I don’t want to be dictated to.
Why start your own party when you crash a party? Apparently Web 3.0 means the death of the homepage (and portal). Information will be syndicated and aggregated across utilitarian sites such as Facebook and Twitter. I absolutely subscribe to this view. Content creators – use existing mediums and venues out there to build your audience. Don’t re-invent the wheel. And don’t try to because you’re not that good at making the wheel. Leave the aggregation and platform development to the tech guys.
In the early days of development we got offered a substantial amount of money for the exclusive rights to the show. The website was a startup video site which wanted to channel the traffic exclusively to the OzGirl home page (ozgirl.tv). All other platforms such as YouTube, MySpace, etc would have promos and adverts aired instructing users to visit the home page. Now this was a very tough decision for me… it went against everything I as a hardcore internet user believed and WANTED to see on the net. Because if I was the end user I simply wouldn’t bother. I don’t want to readjust my routine and visit a new website.
It seems that this mentality it still prevalent within the industry. But I strongly believe that the Web is about freedom and choice. Users should be free to create mash ups of the work. To engage in it and take a piece of it home and into their lives. To remix it and play with it, copy it to their profiles and share it. Wherever they want. So the question then becomes how do you make money from this airy-fairy philosophy?
You will ultimately make more money this way. Product and brand integration is exactly that, it’s integrated into the content. It’s not web page, or player dependent. Because IT IS the content. Syndicating your show to all platforms then allows you to aggregate your views and charge a higher CPM. Or you bake your pre-roll ads in. Make your advertisements independent of websites and players. Run competitions at the end of each video, or sell your merchandise within the videos. There are dozens of options. When an advertiser wants to reach a MAXIMUM audience, syndication is the key to giving them what they want and getting you what you want.
If your content is everywhere, your brand is everywhere. You will have a better bargaining chip than the aggregators. That’s the position you want to be in. Make full use of the platforms out there, but don’t just depend on one, extend your brand everywhere.