Sony Discovers That Web Video Needs a Purpose
Seduced by the success of YouTube, far too many people are mimicking the online video pioneer. But a lot of companies are finding out that it is tough to catch lightning in a bottle. That includes giants like Sony, who invested $55 million in a user generated web video site called Grouper six months ago.
The Grouper experiment has failed. “User-generated video is dead to us,” Grouper founder Josh Felser told an interviewer.
“The same content is on every site,” Felser complained. “Equally as important, you can’t monetize it. Advertisers don’t want to be associated with unpredictable content.”
Grouper, which going forward will be known as Crackle, is bidding to become an online movie studio instead. And that’s a smart move, as they become a site with a specific purpose, making it more likely that they will intelligently use Sony’s resources and skill sets.
A specific purpose is a must. When I first conceived of the idea of Free IQ, the specific purpose was clear, providing visitors with useful, meaningful, skill-building information. Free IQ has a powerful revenue model as well, offering experts on all subjects the opportunity to sell their intellectual property on our site.
Free IQ users don’t have to be content providers to make money with us. By registering as an affiliate, they can profit from the purchases of any users they refer, as well as share in the revenue of sales made by any content providers they introduce to the site.
Web video is here, and will do nothing but grow. But many big players in the industry are discovering that they aren’t going to be the next YouTube. They’re learning that you need to focus on doing something specific and do it well in order to profit from it.
We’re pouring significant resources into making Free IQ an important source of knowledge for visitors. Doing so will provide our content providers and affiliates with a considerable opportunity to profit along with us.
That’s Free IQ’s purpose. And while we’ll never be YouTube, each and every day we’re getting a little bit closer to being that indispensible resource that we know that Free IQ can be.
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It’s a shame to see companies rushing into battle before evaluating their core competency. Sometimes the selling to x market is better than being in x market.
Just a thought.
Brian
aigauto.com
Hi Brad, it is always so enlightening to get the latest scoop from your blog, just as you guided us to seo world couple years ago. We can’t thank you enough for that. I have a question, now we have built another website http://www.cathaygems.com hopefully it will do as good as the old one. Do you think it might be a good idea to have a video and upload to youtube with a link? Or maybe it is better to have it on site? pleae advise. thanks.
i’m in brad … where can i buy a couple shares of free iq? will look out for your ipo.
hair loss
Hi Brad,
In a way this is good for the little entrepreneurs… here is why I think this is true… the bigger corporations still are slow to catch on to the concept of niche marketing as it relates to online marketing in general and video marketing specifically.
Two good examples of niche video marketing are http://www.askaninja.com and http://www.rocketboom.com. These two sites, (like free iq) are using video strategically by building it into a niche.
This has use for their visitors and I believe that it will also be of use to advertisers who will want to sponsor advertising on a site that will fit within their demographics. The two sites above have been able to captilize on advertising revenue by using this very concept.
Corporations are slow to catch onto this idea… and for now, this leaves a great window of opportunity for those of us who want to capitalize on this new frontier before it becomes passe.
Brad,
I’ve been looking for the best way to monetize videos and FreeIQ is THE best way out there. “lightning in a bottle!”
Problem is finding the time to DO IT!
There is absolutely no doubt that the intelligent and engaging group of entrepreneurs (and you too Brad
)that run FreeIQ know best what it takes to get to the level of YouTube.
Best wishes,
Rick B
Stomper
Brad,
I just recently stumbled upon FreeIQ and must say that it is a brilliant idea. I believe that providing Knowledge is really what the Internet is best at and to figure out a way to profit from a service like that is something I would love to do.
Keep up the good posts…
Sean
Toy Tracker
Brad,
I too just came across FreeIQ by accident when surfing the net. I think it’s a long time coming and will keep an eye on it. Thanks.
spread the word, great resource brad!
$20 in 10 minutes FREE
Competing with You Tube? Never happen. They have too much of the online video marketplace, especially since Google bought them. Better to go after a niche within the market. Maybe topic specific videos. This is no different then trying to compete with Wal Wart.
Sounds like a good idea, always vote for the underdogs. Get enough support and they may beat You Tube.
Quiksilver Sunglasses
One day I hope I have enough moola to blow $55Million on a project. : )
wwweharmony.com
What has been long established is usually hard to compete with such as Youtube. But persistence sometimes can.
Healthy Cooking
Imitating youtube is worthless i think, the site is just to popular.
Why would you post something on any new site, you’re not gonna reach as many as you would on youtube.
Great post Brad. My sense is that just like anything else, web video can suffer from the same duplication issues that drive original site owners batty.
Posting the same video on multiple websites or trying to complete with Youtube make no sense from a monetary and branding standpoint, so the group is better off developing in a niche where they can be original and offer something new.
Car Insurance Agents
I like you tube and agree it would be pointless to compete with them on their level
relocate
Brad,
Just as it was once fascinating to follow the progress of MyWeddingFavors and recently StomperNet, it will be most interesting to see the evolution of FreeIQ. You have most certainly pulled together an amazing team, so I have no doubt big things are on the horizon.
Congratulations on all the success.
Presentation Folders
Hey Brad,
I definitely agree. People think that the best way to make money online is to find that “unique” idea that will make billions, forgetting that things like YouTube, Yahoo, eBay, and Amazon require a lot of investment to make it work.
Instead they should focus on more systematized and proven techniques.
Beginning Marketing Blog
Interesting point.
I always found that those video sites could probably not generate a lot of revenue as most of the traffic is just people interested in a bunch of free videos!
Games Workshop Warhammer
So don’t too brilliance.
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雷蒙磨粉机
破碎机
Brad thanks for the background info on FreeIQ. Great idea and great reminder on the value of “focus” when it comes to competing in the marketplace.
southwesternrusticfurniture.com
Phoenix Health Insurance
Thanks again for the updates! $55 million, how can they let that happen?
Gifts
This just shows the confusion that companies STILL have when it comes to the internet. They think web users are mindless sheep that stagger to the same place over and over again.
They don’t look at the psychology behind it. What are web users looking for? Or maybe I’m just blowing smoke.
Lehigh Valley Web Design
I have been following wedding favors and stompernet both wildy succesfull, hope you can do the same with free IQ
sicily property
This reminds me of the recent issue involving Sony here in our place. There have been a lot of complaints regarding their digital cameras. Most of the cameras sold in the market have factory defects in any of the parts of the camera. As a result, customers who complained were advised to return their camera and will be paid back.
Sony is a very popular brand. I hope this popularity won’t give them any excuse to make their Quality Control procedures lenient.
I’m glad to see an example where the Giants can’t rush in and push out smaller players just because they have the big bucks.
I view this as a win for the “little guys”.
David
Print Postage
Taking an already great idea and creating a different yet similar niche is one of those simple ideas that few people can do well. Brad is one of the innovators who make big things happen - I keep an eye on whatever he does.
Sam
Cell Phones
no follow added niceone brad
I have been following wedding favors and stompernet both wildy succesfull, hope you can do the same with free IQ