Mar 14, 2008 • 1 min read

Gloomy future for video on demand websites?

US business title Investors Business Daily predicts many video-on-demand services will struggle, while Veoh and Stage6 face lawsuits, with YouTube as the exception.

US business title the Investors Business Daily has predicted the demise of many of the web video services that have materialised in the last few years, with the exception of YouTube.

The business title says that those video-on-demand services that have done deals with the big content players, like Joost, will struggle to keep going because of the discrepancy between the fees they are paying content owners and the revenues they can generate through subscriptions and ad sales.

Meanwhile others, like Veoh and Stage6.com, which are based on the YouTube user-generated content model and which are most popular because they illegally host the kind of content now blocked by the Google owned YouTube (mainly big TV shows), will face crippling lawsuits from content owners, who will be less keen to do licensing deals with the smaller video sharing websites because they lack the reach and financial backing to be of value to the major record companies, film studios and TV firms.

So, that's nice.

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