We have two presentations to potential investors coming up this month and I wish I could send them this article beforehand (or that they read it on their own):
Online video ad network LiveRail has just released a ‘State Of The Industry Report’ for Q3 2008. It reports that video ad spending currently only represents 2.36% of all online advertising, but that it is expected to grow over 55% next year. Right now only 20.95% of internet video streams are being monetized.
Realvibez has always focused on professional content instead of allowing users to upload their own videos…
Hulu is more successful because it has the ability to sell out its inventory.LiveRail suggests that this is due to Hulu’s less ‘risky’ content. Hulu’s “policy of only serving high-quality original content, and securing licensing deals from content owners, rather than allowing users to upload the content themselves […] has removed the risk of copyright infringing content, or content of questionable quality; risk factors that most advertisers are anxious to avoid being associated with.”
No surprise there.
I wouldn’t mind if they read this one from Fortune as well: This horror show oozes money
In the last year, the site’s traffic has more than tripled, to 700,000 monthly users. A source close to Fearnet says the company expects to turn a profit next year.
Only 700,000 users and getting into Fortune plus projected to be profitable – I am confident that we can do that too.
Fearnet is doing well because it’s not betting solely on Web video and the advertising to support it. The company also sells ads on its television channel and collects fees from cable operators who carry it.
That has been in our executive summary and business plan since day one.
“What Fearnet.com has done well is create a community around it,” said Ben Mogil, an analyst at Thomas Weisel Partners. “In many respects, it is similar to fan sites for sports teams. It has a very non-corporate feel which is a plus for fans.”
And it is the same for fans of musicians and genres.
So Realvibez.tv is doing the same things for a different niche that already has a fan base to reach out to easily – Reggae music alone is a US$1.25 billion-a-year industry according to a recent U.N. report released in June – is gaining traction, is the only official Caribbean media partner for YouTube and already has a licensing deal with the number one Caribbean entertainment television station.
Who wants to invest in the future?
My cell is 954.683.8326 and I am dead serious.