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Bearish Signs?

May 7, 2009

A couple of bearish news stories in the web TV world.

First, the Hollywood Reporter reports that 60Frames has stopped operations due to lack of funding. And today, MetaCafe decides to stop their Producer Rewards program.

As much as I think the web TV world is a wonderful place that democratizes the creative process, I also recognize that the advertising business models in this category don’t support most productions. We’re coming off a “bubble” (2006-ish) where people used to think online video was going to be a viable way to make money. Now, it’s the opposite. With the economy in bad shape, marketers reducing their advertising budgets, and depressed CPMs, it’ll be interesting to see which video start-ups survive 2009.

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2 Comments leave one →
  1. May 8, 2009 12:03 pm

    Coming on the heels of our lunch on Wednesday, where we discussed these very topics, these stories are a little disheartening for all of us aren’t they Andy? We’ll have to keep thinking and tinkering to find a business model that will work for us.

  2. May 8, 2009 5:33 pm

    It certainly will be interesting, Steve. Also, note Liz just reported that Crackle isn’t going to allow users to upload anymore.

    http://newteevee.com/2009/05/08/crackle-cuts-off-user-uploads/

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