Monday, December 05, 2011
Original content is King
To pick up on Iolo's thread it does seem that the period where the "new distributors" got a free ride on the back of original content created by others is drawing to a close.
It is very difficult to create compelling content in any format and the costs and risks of doing it are considerable. You only need to ask the brave souls who get involved in Film Finance. No surprise then that if you can simply show all the content that everybody wants for free (and sell the advertising) you will be onto a winner. YouTube have partied for 5 years on this basis.
Whatever the rights and wrongs of BskyB they invest considerable sums in new content and rights and take big risks in so doing but have a mature business model and ability to manage the process of original content creation.
YouTube are at the very beginning of this and will experience the realisation that if they had been required to pay market price for all the worldwide rights they have been showing they would be deeper in the hole than Silvio Berlusconi.......but sadly without the bunga bunga parties.
If Google decide to create the mother of all global rights budgets they can hold the position in terms of audience but how that looks on the P&L is another matter entirely.