Online video dries up

Posted Dec 16th 2008 10:27AM by Tom Taulli
Filed under: Industry, Recession

Over the past few years, online videos have grown at a rapid clip. In fact, it's not uncommon for people to watch TV while on their laptops.

Unfortunately, this megatrend isn't translating into much money for Hollywood. If anything, it looks like ad revenues are evaporating.

Of course, traditional broadcast revenues are expected to drop next year as well because of the global recession. In other words, Hollywood is in a tough spot.

Another problem is that there is a spotty track record for online videos. Do people look at the ads? Is there a real brand-building experience?

Despite all the growth, the online video sector is still relatively small and doesn't really move the needle for Hollywood. When coupled with the global recession, it's typical to see cutbacks in experimental things, such as online video.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a valuation website.