Online video has been a reality for a long time; we don’t have to explain the traffic that YouTube.com has, being UCG.
What trends are forecasting is professional content; I mean the one that we see at primetime everyday outnumbers UCG. In practice we can see the trend but it is not verified this affirmation due to two reasons:
– Business model is not proved. Before Hulu, there were not entrepreneurs that could obtain the rights of big amount of quality content and that could be monetize with advertising and it was not known if advertising could be sold accordingly.
– The other big fear of the content owners was how this was going to affect its current cash cows (following the old-fashioned analogy of the BCG), the audience on primetime TV.
What happens now?
Even though online advertising has a lot to improve, this advertising can be sold very well , and online audience doesn’t cannibalize TV audience.
All this seems to be verified in reality and because of that, it stops being a Hulu experiment, to become a pioneer in a business area where other are launching to compete, in this case Waner Brother’s with TheWB.com and KidsWB.com.
The attempt of being competitive in the online world arrives also with the launch of a Facebook application.
All this is to show that the audiovisual entertainment industry seems to be learning the lesson of the recording labels, looking for a way of reinventing themselves. This seems to be a good initial version.