youtube is making money!
Did we not call this? The evidence of a tidal shift in monetization of online video keeps building. YouTube is selling keywords, much the same way its regular search cousin, Google, does. Interestingly, YouTube alone gets more search volume than all of Yahoo’s properties.
So what does this mean? We’ve been harping on this internally for some time now. When YouTube makes money, it’s just the first step in a series of events that ultimately helps the screenwriter. The story goes something like this.
YouTube sells ads for chess sets next to your video about chess-playing aliens. Let’s say YouTube makes $40/year on all clicking going on around the clip you uploaded. You get a (optimistically) 50% cut of that and think, wow, for an annuity of $20, I just have to put up a catchy video? Awesome! Net present value of an annuity at a 6% discount rate is a cool $333.
So how do you beat the odds that your video is well-watched? You make sure it’s scripted, of course! YouTube is flooded with ad hoc improv. Scripted videos will rule the day. And where do you get that script? At Scripped.com, obviously, and you pay some fraction of your NPV for it. That’s how YouTube making money puts money in writers’ pockets.
Oh, and with companies like Auditude making headlines by associating you as the owner, no matter where the video is streamed, that $333 is just the baseline. It’s all up from here.
Ryan
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