Former securities analyst turned blogger Henry Blodget has composed an interesting analysis of the possible future of online video called Economics of Online Video. The numbers and analytical rigor are seductive, but one thing stands out as an incorrect data point/assumption—Blodget's comment regarding online video producers.
Blodget said, "…there are two other critical inputs into most streaming video business models: Content production/licensing costs. Relatively low for TV networks, which can repurpose content, and high for plush online show producers (costs of shooting, editing, studio, etc.)…" Plush? Hardly.
This is where it pays to be obsessed with a topic. Anyone producing indie-video or consuming a daily diet of online-only video content from indie-producers (as I have been for the last few years) can tell you that the costs associated with shooting, editing, and studio space for an indie-video podcast are minimal, especially when compared to network television. For examples see: DiggNation, The Chris Pirillo Show, The Jeff Pulver Show, The Totally Rad Show, and others. Because of that flawed data point regarding production costs, it's hard to accept all of Blodget's conclusions. But there's enough meat in his extremely well done report to sober up anyone thinking that simply grabbing a video camera and talking about the day's news is an automatic ticket to becoming an Internet star.
