IP Democracy: Fame and Fortune in the Online Video World

Business Week’s Catherine Holahan has this interesting piece about how creative talent — actors, video directors, vloggers — are making money off their Internet video performances and shows. She starts with an obvious example: Amanda Congdon, formerly of RocketBoom fame, who has inked a deal to be a media correspondent and video blogger at one of the three (presumably CBS, NBC and ABC) big broadcast networks.

But the other examples are far more intriguing. For every Amanda Congdon, there are probably ten Joe Eigos. Martial artist Joe Eigo has generated real revenue with his series Matrix for Real, which is self-published on MetaCafe. Eigo has apparently earned $23,000 in two months under a producer rewards program established by MeatCafe that pays contributors based on viewership.

Others video auteurs, such as Kent Nichols, co-creator of Ask a Ninja, are actively selling advertising themselves to generate revenue. Hosea “Ze Frank” Frank, creator of The Show with Ze Frank, is one online video entrepreneur who has landed some big ad supporters. He thinks that once better audience measurement tools come along, a lot of people will be able to make a living selling videos on the Internet. (BTW, the New York Times’ Louise Story has this article today on advertisers’ demands for better click-through and viewership data.)

Frank believes that once advertisers become more comfortable with the online space and measurement tools, video creators will be able to support themselves in several different ways including licensing agreements, advertising revenue-sharing agreements with host sites, and straight advertising deals. “I think there are a few different business models that are going to emerge in this space,” says Frank. “We are really in the middle of figuring all that stuff out right now.”

Others don’t make money off their web videos directly, but use them as a springboard for promoting other revenue-generating activities. Steve Garfield uses video to snag consulting and speaking gigs.

Steve Garfield, one of the original video bloggers, is one of the online stars who gets paid to make appearances in the real world. Garfield now supports himself through video blogging, speaking engagements, consulting, and Web video production work—all bolstered by his online fame. His shows, including the Carol and Steve Show that he runs with his wife, receive more than a thousand hits per day. “I am not generating a ton of money off the advertising,” says Garfield. “It is just something to cover the hosting fees. The speaking and consulting on video blogging complements it.”

Posted by Cynthia Brumfield on October 30, 2006 8:07 AM to IP Democracy