The world is abuzz with the changes spurred by the (third) arrival of video to the internet. There is truth in the perception, but many questions are unanswered by the hype.
The way we see it, three factors will create the actual value of video on the web:
1) ubiquity: it will evolve from a feature to a standard component of every website
2) involvement /interactivity: the business models that will succeed are those that combine the emotional appeal of moving pictures with a wide and differentiated range of interests reflecting long tail segments which in their combination reflect any given markets population diversity
3) cannibalization of existing markets: there is still no new money out there, so startups have to decide who’s pockets they’re after. The Advertising World? Media Budgets? B2C Entertainment? E-Commerce -> Retail? That is the Gretchenfrage.
Incidentally, that’s the exciting part of
the board of which I just joined. they will beat YouTube in Europe, not as a copy. Al Ries in “The Origin of Brands”:
“If you want to beat the incumbent, you have to be the enemy of the incumbent”
So be it.
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