User-Generated Content Will Be Profitable, One Day, Maybe  

Posted by Alex Dunner

This article asks the question is UGC actually profitable for companies. The article goes over the rapid growth of user generated content over the past 3 years mainly by looking at Google's acquisition of You tube. The article state that as of now You tube one of the largest most popular sites for UGC in the forms of video has yet to create a profit for Google since they bought it. This article explains some of the new strategies that Google plans on implementing to try to gain some sort of profit from You Tube. These strategies include enabling ads and revenue sharing on individual videos that prove to be popular, Click-to-Buy” links ( to itunes for songs) , advertising space before, during or after a video, as well as working with TV networks to get full length show on the site. In my opinion if feel that these strategies will provide Google with a profit but will these ads deter users from the site, or clutter the site content, or will it push users to generate better quality content. I guess we will see.

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1 comments

Interesting article!
I think Youtube eventually will need to adjust their business model. Internet users are getting better and sharper to find better services. Ads is always something people want to avoid, if that is too much on the site, it might deter users away from it.

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