User generated content and video: “the honeymoon is over”

User generated video content exploded in 2006, but revenues have so far proved slow to develop. So says market intelligence firm Screen Digest in its report, ‘User-generated online video: Competitive review and market outlook’.

Stories like this may be as old as my Sega Dreamcast (ie time itself), but it would have been nice to have seen something like this during the Google / YouTube broohaha last year.

The report got me thinking about wider applications of UGC video. Sure, there’s currently limited revenue options available to websites that are positioned as searchable online TV channels (e.g. et al), but what’s happening with sites that feature UGC videos as a means to support a wider function?’s user reviews generate sales, albeit indirectly. Okay, they’re text based , but isn’t there scope for video based user reviews. A well written review can be invaluable to someone who reads, but what about reviews on DVD or video gaming channels on retail sites? Review a film (DVD) with a film (videod user review).

As long as videos are concise the demographic for gaming may prefer video to text. Okay, it’s sad that reading text may turn off younger users, but video might prove valuable in that: a) its more engaging that the ‘wall of text’ review – which users inevitably scan over or ignore and b) seeing the reviewer in person may help provide a fuller context to someone’s comments.