Quote:
Originally Posted by gideongallery
really going back to the lawsuit thing after the judge rule in favor of the tube site in the big veoh case.
Funny as hell
ok since you want another example, how about gfy.com
how much are you paying to post here (zero)
yet they are making money
it is possible to make money from giving content away for free. Look at tgp before that
lots of money there.
free news sites like slashdot.org
digg.com
msn.com
google.com
should i keep going, find an advertiser who will foot the bill and it is really easy making money by giving away content.
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Clueless
Sites like digg, slashdot and google are in no way comparable to tubes. User-generated and/or low-bandwidth content is relatively cheap, on a per-user basis. That's the big problem with the tube business model.
There is very little actual user-generated porn. Most "user-generated" porn is just user-uploaded porn, instead. If you don't want to base your business model on having users upload porn you don't own the rights to, you will have to pay for it instead. Of course,
you can get tube-licensed content very cheaply these days, but the costs are still relatively high.
Moreover, bandwidth costs on video are much, much higher than they are on text. Bandwidth has gotten much cheaper in recent years, but with tube sites, the costs are still significant.
Together, these things greatly decrease your profit margin.
With economies of scale, legal tube sites can still make a handsome profit. The problem, though, is that everyone will start one just to be able to compete with the others. Of course, when that happens, a tube site won't have the pull of offering more content than other sites anymore, and average traffic will drop, killing the economies of scale for most tube sites.