Of course, the market has surged over the past year. In fact, almost half of all online videos are user generated. And Screen Digest sees the growth continuing.
The problem? Well, it is particularly tough to monetize user-generated content (UGC). For example, only about 15% of online video revenues come from UGC. Then again, UGC has a good amount of bad content. Also, there is also danger to a brand (if the content is offensive).
True, a company can preview the content. But, what would the cost be?
So, is this bad news for Google's YouTube? Perhaps. However, keep in mind that the company has been aggressive in licensing high-quality content from traditional media companies.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide go Decoding Financial Statements.