How would you run a company (online video in trouble?)?
By Jason Moriber • Jun 19th, 2008 • Category: Creative DestructionI didn’t go to biz school, I learned the business-building ropes through gigs in retail (Strand Books) and technology (Fortunecity.com). Both were totally different in structure and revenue model. At the Strand, the owner Fred would stand behind the counter and say “it could be fish.” He sold enough goods at a decent price to make a good living. At Fortunecity it was value we were building. We had targets to reach set by the CEO and the investors.
Web 2.0 companies have it rough, it might seems like the perfect situation to have deep-pocket investors who give you the time time to find profits as long as revenues, users, keep coming in. This creates so many flash-in-the-pans that these businesses no longer appear as sure-things but become viewed as high risk hot potatoes (which they actually are). Yes, these companies have the agility to suddenly find the right stroke and break it big, covering the losses of the firms that invest in so many of the ones that fail. Still, it’s science-fiction reading about companies who have so much invested, have so much share of the public interest, but are wavering on defunction.
Online video is huge, but when I call around to the venues/purveyors none except the marketing evangelists are gung-ho about the model. Most on the business-side can’t figure out where the money will come from, and most are seeking ways to cut costs, while still being tasked with making/obtaining more and more content, it’s a land grab for the future of who-knows-what.
Liz Gannes of GigaOm writes a post on CEOs within the realm of online video stepping-down and/or being replaced. nails it with: “it may well be that this first generation of new media content companies paves the way for the future of entertainment but gets crushed by business realities in the meantime.”
Truth hurts.
Jason Moriber is a veteran product/project/marketing manager, underground artist/musician, and online community developer, Jason expertly builds/produces/manages clients' projects, programs, and campaigns.
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