Monetizing video has always been a daunting task for traditional print publishers building their online properties and the equation gets even harder when you look at trying to monetize user-generated video. And although I recognize that there are many models one can study and take things from to build your own, I would strongly suggest that publishers reviewing their video models take a look at the Metacafe model.
Metacafe is a UGV site, which has been in existence since 2003. Knowing that amassing content was their primary objective; Metacafe decided not to bill the content providers (the marketplace) and instead created a revenue model that complimented the user and user activity. What Metacafe does is sell inventory through video networks, charge for prominent placement of promotional videos and offer overlay units within videos. The site also uses the Google’s AdWords program for running display ads. Certain content providers are paid out of the AdWords revenue and it’s all based on video performance and popularity - See the Kip Kedersha story for more details.
The model seems to be working for Metacafe as they manage to increase their market reach in not only North America, but world wide, on a daily basis. Today Metacafe celebrates 30 million visitors per month, 500 million page views and 200% year over year growth! Traditional print publishers will also be happy to know that Metacafe moderates their content before it is published to the web - don’t know if I quite agree with that operating process however.
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