Show Me the Money!: What UGC Sites Must Do to Survive

Short-Form Video Is a Vital Part of the Anywhere Consumer’s Media Mix User-generated content (UGC) is the new media darling of the Anywhere Consumer, but can it become a profitable media channel? Or is it doomed to go the way of the dodo bird? Anywhere Consumers are enamored with UGC. On average, internet users watched 7.2 billion video streams per month in 2006, up from an average of 3.7 billion video streams a month in 2005 (see Exhibit 1). This growth is a result of the exploding popularity of YouTube. But while the number of streams being viewed was going through the roof, the average length of a stream was declining. In 2005 the average length of a video stream was 2 minutes and 12 seconds. In 2006, the average length of a video stream fell to 1 minute and 30 seconds. UGC fills the desire for short-form video or “video snacking.”