In a recent interview with Metacafe CEO Erick Hachenburg explains why its all about Social Discovery, Content Creation, and Verticals.
1. Content Pays Again
We’re now in the second wave of online video, says Hachenburg. In the first, pre-recession wave, sites like his own paid content creators for popular videos. Then the recession hit and the money stopped. Now, however, there’s a video resurgence and creators are again making money. More video sites have revenue-sharing plans than before, and having great content is crucial for sites.
“Even though the CPMs are really low, the views are so high that you can actually start to make a living if you have some success on YouTube,” says Hachenburg.
2. A New Focus on Verticals
Video sites that attract a particular audience are hot right now. That’s because sites with a focused audience are better able to attract advertisers. Even YouTube is getting into the vertical game, Hachenburg says, by creating 100 new channels targeted to particular viewers. It’s the same thing that basic cable stations have been doing for years.
“Now you see everybody saying, ‘How do we deliver a particular audience?’” says Hachenburg.
3. Social Discovery Will Meet Video
This one is waiting in the wings, but Hachenburg predicts it will hit soon. Facebook is now the biggest site for video sharing, but there’s still no online video player that taps the power of social networking. This could explode now that Facebook has adopted a timeline view, letting people easily see what videos their friends are watching and recommending.
“We expect a lot of change in the coming year around that social graph and the Facebook platform as a video platform,” notes Hachenburg.
For the full interview with Metacafe CEO on Social Discovery, Content Creation, and Verticals, watch the video at beet TV