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YouTube User-generated Video Revenue Models

YouTube's new system debuting in April 2010 will let any YouTuber rent their movies to viewers on a pay-per-view basis, and it's more or less self-service.

3 --- This new Google system is the third way to monetize video content for YouTube users. Other revenue programs includ:

2 --- YouTube Partner Program

1 --- Individual Video Parnership system

The new YouTube revenue system simplifies the path content developers use to upload clips to the YouTube site and try to make money from them.

Much of the interesting, and possibly newsworthy, content on YouTube comes from man-on-the-spot cell phone cameras, so YouTube is making it easier to upload this video footage too.

Video Clip Rental System

If its terms are agreeable, and Google really succeeds in making the clip rental system both transparent and user-customizable, it could turn YouTube into a platform for folks to release all sorts of user generated video content.

Monetizing these clips would have to obey the increasingly fearsome rules about fair use of copyrighted background music and any other people's mixed-in footage, but Google's effectively enabling for-sale video clips to become a new micro business phenomenon.

The potential for professional, or semi-professional, video content producers to use YouTube as a launch vehicle for their video wares and leverage off its tremendous audience reach (135 million views in March, 2010 which is 3 out of 4 Web video viewers) and close tie-ins to Google's search functionality.

Creative content distribution -- for music or video producers is even bigger. For example, if a band had a pay-per-view music video (priced at a low figure to meet current users expectation for "buck a play") or if a videographer had video footage of a breaking news event, and quickly uploads it to YouTube, they could earn cash directly. No need to sell the clip to a more traditional news broadcaster or stock footage house.

Democratization of content is changing the way creative content producers do business. And Google is at the center of the tornado.


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