Give Away the Milk: Slap Ads on the Cow
Okay, I couldn’t resist. MediaPost today blogged about CBS using YouTube for their free NCAA tourney highlights. Not that there will be any highlights, since both my team and my alma mater got knocked out in the first round. Stupid upsets. Ahem. Anyway. This comes after CBS partnered with CSTV for their user-generated content contest. This new move is especially important for CBS because they were having trouble accomodating the high traffic levels on their site.
It seemed for a while there that CBS was with Viacom on the “kill YouTube” boat—but apparently not. Guess what, big, huge, YouTube-hating networks. As I just said, “Give the milk away, and make tons more money than you could from selling the milk by slapping some ads on the cow.” The new agreement will offer ad-supported highlight reels through YouTube. YouTube and CBS will split the revenues.
“Is there really enough to go around?” ask the YouTube-hating networks. “Won’t having clips on YouTube hurt our company/brand/image/popularity?” Just ask CBS. In 2005, their subscription model pulled in $250,000. Not too shabby, but nothing compared to 2006, when they switched to a free, streaming, ad-based model: $4.5 million. That’s an 1800% increase. No, really. And they expect to double that this year, even before they announced the Pontiac-sponsored YouTube channel.
So give away the milk and let your advertisers pay you for your content. I mean milk. . . .