Online video Economics

As online video is seen as one of the honey pots of Internet monetization whether it comes to advertising or another model, I suggest that everyone read Internet Outsider's articles on online video economics (Tough business & Unit Cost Analysis).

After reading the articles, I was surprised. I have always seen online video business as very promising, but the facts talk against it. The costs are high and variable (you need scale to compete), and profits margins are not spectacular (you need a sound approach to content creation). Content creating in comparison to the monetization capabilities is not an easy knot to solve also.