YouTube to Share Revenue with Creators


YouTube CEO Chad Hurley said today his company (now owned by Google) “is going to move in [the] direction” of rewarding video creators for their content, as part of a panel discussion at the World Economic Forum meeting in Davos.

Attendee Jeff Jarvis taped the statements and posted them to his blog:

Revenue sharing is something an increasing number of YouTube competitors, such as Revver, Metacafe, and, have used to differentiate themselves from the front-runner.

Hurley explains that YouTube management decided against monetary incentives because they might have attracted the wrong kind of contributors. We haven’t really seen that play out on other sites — Revver et al seem to be relatively unpolluted by anti-community money-grubbers. Hurley:

In terms of paying users revenue against the content that they’re uploading, we’re definitely going to move in that direction, but we didn’t want to build a system that was motivated by monetary reward, we wanted to build a true community around video. When you start out with giving money to people from day 1, they’ll just switch to the next provider…that’s paying more. so we feel that we’re at a scale now that we’ll be able to do that and really be able to have a true community around video.

From our perspective, it seems like the near-total absence of ads on YouTube was an essential part of its success (there are other factors, of course). You do need ads in order to share ad revenue, so perhaps that’s why rewarding creators was a non-starter until now.

In related news, Andy Plesser at Beet.TV got a look at a new Forrester report that says 7 percent of consumers in North America who use the web regularly are uploading videos at least once a month.



En estos tiempos es bueno ver gente que aún creen en la creación de empresas y la iniciativa privada.

No hay nada más gratificante que crear una empresa y verla crecer. Es el motor que crea riqueza y trabajo para todos y sobre la cual se sustenta nuestra sociedad.

Enhorabuena y suerte para todos.

NewTeeVee » Metacafe Demotes CEO

[…] Now is the time to sell a video-aggregating startup. Scuttlebutt says the window is closing, with companies like eBaum’s World failing to find a buyer despite their efforts. Many had thought the window was already good and shut, unless Metacafe could close its much-rumored acquisition by Yahoo or someone else. Valuations appear to be getting lower even if traffic isn’t headed south, what with lawsuits and maneuvering by the GooTube juggernaut. […]

GigaOM » Metacafe gets a new CEO

[…] Hitwise data says comparing Jan-07 versus Dec-06, the market share of visits to the site among all U.S. web sites increased 1% — that’s in contrast to the company’s growth between Jan-06 and Jan-07 where Hitwise says its market share of visits to the site increased 912% among all US websites. That year over year traffic boost came as a result of the company sharing the advertising revenues with video creators — an advantage now blunted by YouTube’s recent announcement. […]

NewTeeVee » YouTube’s LisaNova Joins MADtv Cast

[…] Well, it appears YouTube’s posturing toward paying its creators is coming a little too late for some of the site’s stars, who are already making the leap to television. Yesterday FOX announced YouTube star LisaNova is joining its MADtv cast (we first heard about this on Mashable). […]

Go Digital, Feel Analog » 2007 gonst!

[…] Filmgeld YouTube gaat video-uploaders kleine beetjes betalen uit opbrengsten van advertentie-inkomsten die hun video’s hebben gegenereerd. Ben dan wel benieuwd of Google uberhaupt uitkomt met de advertentie-inkomsten om YouTube zelf te kunnen bekostigen…? […]

NewTeeVee » Gates: TV is Doomed

[…] As Download Squad points out, this isn’t exactly a cutting edge prediction. Maybe he ran into Chad Hurley, who explained that this whole video on the internet thing could be big — huge even — and got excited. Meanwhile, today Bill’s busy lowering his standards and appearing on regular old TV — the Daily Show on Comedy Central — to promote the release of Windows Vista. Though if I were Bill, I’d leave the funny to Demetri Martin. Topic: Software, Online Video Tags: Bill Gates, IPTV, Davos […]

Porque lo mío es el cine » El Blog de Enrique Dans

[…] Pues si lo tuyo es el cine, ya sabes: consíguete una cámara, échate a la calle, ponte a filmar, y envía tus vídeos a YouTube. Es posible que hasta puedas vivir de ello. Chad Hurley, fundador de YouTube, anuncia en Davos que la empresa está trabajando en un sistema de reparto de los beneficios obtenidos de la publicidad, que redundará en un pago para los autores que suban vídeos al sitio en función del tráfico obtenido (Smart Mobs, BBC, NewTeeVee y en vídeo aquí). El movimiento no es original, algunos sitios como MetaCafe, Revver o ya lo hacían, pero se trataba básicamente de una acción llevada a cabo por start-ups que intentaban diferenciarse del competidor principal o líder del sector. Los rendimientos que un autor puede obtener en este tipo de sitios no ofrecen comparación con lo que un sitio como YouTube, con decenas de millones de visitas diarias, puede llegar a ofrecer. […]

La Tejedora » Blog Archive » YouTube, compartir es cosa de dos

[…] Una vez convertido en el único sitio de destino de las creaciones de los internautas, la página creada por Hurley y Chen deberá verificar que quien pretende cobrar por la reproducción del vídeo es realmente su autor, los errores no gustarían nada a los verdaderos propietarios, llámese Hollywood, discográficas o la liga de fútbol. En este sentido, YouTube también anuncia novedades para los próximos meses relativas a su sistema de identificación de violaciones de derechos de autor. De su correcto funcionamiento y de cómo acepten los usuarios el último requisito dependerá el éxito de la nueva ‘fórmula tubera’. Y es que compartir no significa necesariamente ganar menos: los vídeos empezarán a integrar publicidad más allá de los anuncios textuales. Publicidad que se prueba ya con los vídeos de MTV, Warner y Sony que se publican con YouTube en otras páginas, y que al extenderse a todos los productores podría espantar a los usuarios. Quizás por eso Hurley y Chad no se plantearon pagar desde el principio, lo que atrae a los productores no siempre es la mejor opción para la audiencia. Aunque se trate de compartir y funcione en los dos sentidos. […]

links for 2007-01-28 « David Black

[…] NewTeeVee » YouTube to Share Revenue with Creators “YouTube CEO Chad Hurley said today his company (now owned by Google) ‘is going to move in [the] direction’ of rewarding video creators for their content, as part of a panel discussion at the World Economic Forum meeting in Davos.” (tags: internet multimedia video business revenue innovation google youtube) […]

GigaOM » YouTube makes its power play

[…] If you are Revver or Metacafe, then it has to be the happiest day of your tiny life. YouTube, the 800-pound gorilla just validated your business model by deciding to pay their creators, a cut of the advertising action. […]

YouTuber Users to Receive Ad Revenue » Personal Insights on Web 2.0, Blogging, and Business

[…] This is certainly big news – YouTube is going to start giving contributors a cut of the revenue that YouTube makes off advertisements shown during their videos. The goal is to encourage creativity. Since most people (and companies) simply follow the leader, I’m guessing we’ll see an influx of sites implementing this model in their user-generated web sites. I applaud Chad Hurley for a good business model — he focused on getting the passionate users who wanted to participate for the right reasons before focusing on incentives. I think it’s something many sites miss — in my mind, the quality of community content goes down with increased monetary incentives. It really comes down to the fact that passion is crucial to great contributions and money does not correspond with passion. I don’t think sites that start out sharing revenue (such as Revver) will succeed. More coverage at NewTeeVee, BuzzMachine, Techmeme, and ZDNet. […]

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