ManiaTV Cancels User-Generated Content

(page 2 of 2)

Already, there's technology that screens videos for too much flesh color, an indicator that a clip may contain porn. Audio identification technology can identify video subjects and match videos against potentially copyrighted material that could expose Web companies and advertisers to lawsuits. But identification technologies are far from perfect. Audio tracking technology, for example, can't necessarily distinguish between a video discussing sport-utility vehicles and, say, a critique of SUV carbon emissions.

And there's a bigger problem for video-sharing sites. Much of the amateur video on the Web simply isn't all that good and doesn't attract much traffic. A recent unscientific scan of the most watched videos on YouTube showed more professional and semiprofessionally produced videos than amateur ones. "The user-generated world was dumpster diving for gold, and we didn't find any gold in the dumpster," says ManiaTV's Hoskins.

An Easier Sell

ManiaTV has little problem selling its professional shows, says Hoskins. Advertisers such as Wrigley (WWY) have already worked with the company. As in the early days of television, single brands typically sponsor a show or certain episodes of a show. The company designs ad campaigns for individual brands, offering product placement, short ads within the video itself, and interactive advertisements on the sponsored show's home page.

Google (GOOG) executives appeared to acknowledge the demand for professional content over user-generated material when they announced their plans for advertising on YouTube (BusinessWeek.com, 8/21/07). Instead of putting ads on all videos, YouTube says it will start by placing ads primarily with professionally produced videos from partners. However, Google does plan to place ads on some amateur clips and has announced a revenue-sharing deal with select content providers (BusinessWeek.com, 5/9/07).

As for the users who had their content on ManiaTV, Hoskins suggests they bring it to a competitor with a higher volume of videos. "We would love for them to go to YouTube and have great success there," he says.

Holahan is a writer for BusinessWeek.com in New York .