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Note to Investors: Online Video Is The Future

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): Report: Hulu a more successful business than YouTube Why?

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):

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Report: Hulu a more successful business than YouTube

Why?

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.

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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.”

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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.

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About the author

I am a young entrepreneur who started my first company at 20 during my MBA program at the University of Miami. Our first project was the creation of RealVibes.net, later renamed Realvibez.tv, a leading online destination for Reggae, Dancehall and Soca videos, first launched in February 2002. I am the co-founder of Random Media, an integrated media and entertainment firm focused on Caribbean entertainment and culture, as well as co-founder of Kaizen Interactive, a digital marketing agency. Experience and Achievements - Secured deal for my venture (through the Realvibeztv channel) to become YouTube’s first Caribbean media partner - venture now part of YouTube’s new rental program - Random Media has signed distribution deals for e-book versions of a number of Caribbean books in the Amazon Kindle and Apple iBooks stores - Interviewed numerous times about using social networks for business, previously built up a Facebook fan page for Jamaica to over 55,000 fans in less than 2 years that is now being used by the Jamaica Tourist Board - Asked to endorse a book on entrepreneurship The Toilet Paper Entrepreneur alongside Donny Deutsch, Host of CNBC’s The Big Idea with Donny Deutsch - Contributed a chapter to a McGraw-Hill Publishing book, How To Make Money With YouTube - A judge for Business.com’s What Works For Business contest in 2009 I was born in Kingston, Jamaica, completed his B.Sc

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