Revenue Sharing comes to Video

It had to happen.  As reported in NYT, video sites are starting to share revenue with creators.

 As video sites look for ways to attract higher-quality content, they are dangling cash, usually offering to cut creators in on the advertising revenue their work generates.

Such models are likely to emerge in many User generated Content sites — it is only natural from business perspective.  What is also natural is that most people don’t want to remain in the long tail, they want to move as rapidly to the head as possible.  This is clear from exaples like:

 Kent Nichols, co-creator of Ask a Ninja, a series of comic videos in which a cranky ninja responds to viewer questions, says he managed to earn more than $20,000 last year on Revver. Mr. Nichols now has an agent, who recently helped him negotiate what he says is a more lucrative advertising deal with another company.

A very important thing is

 Just as Hollywood moguls have yet to find an infallible formula for producing a blockbuster, Internet video producers still don’t know why some clips “go viral,� sent by e-mail from person to person and incorporated into blog entries, and others languish, seen only by the auteur’s dorm mates.



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