TheOpenAnalyst

As we enter 2009 three things about online video become clear: (1) with over 17 Billion videos watched in December 2008 in the U.S. alone (according to comScore) and steady month-over-month growth, video is here to stay; (2) video exhibits classic long-tail distribution—while YouTube remains the dominant player, video is rapidly moving from destination sites to the rest of the web, with millions of sites streaming video as the new mode of communication; and (3) the conversation at all levels is shifting from the technological aspects to the value aspects: not how to build a player or convert between formats but, rather, how to foster audience engagement and monetize on these billions of streams.

These observations are underwritten by the trends that became apparent in the past several years, namely, the rapid reduction in the cost of delivery and the abundance of companies in this ecosystem. For anyone who is part of the video universe, the key question that remains open is what drives value in this brave new world. How can publishers, advertisers, and technology enablers make money in a world in which delivery (CDN) is commoditized, display opportunities are abundant (driving CPMs for video advertising down), and audiences expect to get everything for free? The short answer, I believe, is to focus on innovation—of formats, user experience, content, or delivery.

Streamingmedia.com: Industry Perspectives: The Promise of Open Source Video

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