Ad-Based
Friday, June 30th, 2006YouTube made it simple for the a la carte video watcher.
Its interesting that the BEST clips from TV shows or movies can be found there. Forget all the other stuff no one cares about. The user is so in control that she is essentially telling the content creator what is favored and what is not when she puts choice clips on YouTube.
NBC is getting smart.
Doing business with something as powerful as YouTube is the best move.
It makes sense that TV networks are adopting this easier and quicker than the music business has because TV is an ad based business model. YouTube can easily facilitate that.
The revenue stream for the music business comes from CD sales…or at least they want it to.
How can music be part of an ad based model?
Advertising creates a huge platform to work from.
How can the music business wrap its content with advertising. Its a much better, and easier way to pay the content creators.
To shareholders of major labels it makes the most sense to turn to ad revenue as the primary source of income.
More revenue=happy shareholders=an environment to create
