With the audiences relatively small for original Web video, the opportunity for producers and distributors to make money will come from brand messages and product placements "baked" into the video, says Jigar Thakarar, Director, Web Original Content Strategy at CBS Interactive. (You will find his comments 2:30 into this clip.)
Also in this segment, Revision3 CEO Jim Louderback explains how his company is finding success with sponsor credits within episodes.
This video was shot at the Beet.TV online video roundtable at Stanford last month.
Update: Mike Shields over at Mediaweek has a story up today about MommyCast getting a big contract from P&G for a webisode series.
-- Andy Plesser, Executive Producer
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My thoughts exactly. Imagine thousands of niche internet television channels covering every interest imaginable. For example - a channels for shoe aficianados. You show videos about shoes, you collect revenue from shoe-related banner ads, you can even link to an online shoe store and collect a commission. This new business model is already taking place and you can find niche content channels such as ShoeTube on Zipityzap.