- Startups - Jim Louderback CEO of Revision3-TWiST #333

TL;DR

This episode of This Week in Startups features a discussion with Jim Louderback, the CEO of Revision3, about web video, selling companies, and the booming YouTube ecosystem.

Transcript

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Key Insights

• 🕸️ Web video companies like Revision3 were too early to fully capitalize on the industry and had limitations due to funding and technology.
• 🕸️ Funding YouTube Original Channels helped increase the perception of web video as a platform for quality content worthy of advertising dollars.
• 🛀 Production budgets for web video can vary greatly, with early shows like Diggnation spending around $100-200 per minute, while scripted shows like Video Game High School spent around $3,000-5,000 per minute.
• 🕸️ Monetization remains a challenge in web video, with margins being squeezed and a need for better measurement and ROI tracking.

Questions & Answers

Q: Why was web video too early during the early days of Revision3?

Revision3 and other web video companies were early to the industry and didn't have the necessary resources to fully take advantage of the growing market.

Q: How has web video advertising changed since the early days?

Advertising in web video is starting to resemble traditional television advertising, with companies using similar measurement methods such as gross rating points (GRP). However, there is still a lack of consistent metrics and ROI tracking in the industry.

Q: What is the future of web video monetization?

Monetization in web video is challenging, with margins being squeezed and the need for more sophisticated measurement methods. Owning and operating your own content and audience may be the most sustainable model.

Q: How much did Revision3 spend on production budgets?

Revision3 spent around $100-200 per minute of programming, with some shows like Video Game High School spending closer to $3,000-5,000 per minute.

Summary & Key Takeaways

• Jim Louderback discusses the early days of web video and how companies like Revision3 were too early to fully capitalize on the industry.

• The funding of YouTube Original Channels was a turning point in the perception of web video, as it showcased quality content that was worthy of advertising dollars.

• The conversation touches on the production budgets of web video, with early shows like Diggnation spending around $100-200 per minute of programming, while scripted shows like Video Game High School spent around $3,000-5,000 per minute.