Video Producers Explore Options as YouTube Revenues Disappoint

Online video companies that had once hoped to build robust ad-supported entertainment services on YouTube are now scrambling to find additional revenue sources in the face of stagnant ad rates and a glut of inventory.

Subscription services, microtransactions, and new approaches to mobile video are all gaining attention as professional content producers struggle to supplement the underwhelming returns of YouTube advertising.

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It’s here where Machinima’s CEO, Allen Debevoise, appears to hold out the most hope for his gaming-focused MCN. Many people in his audience might not own a credit card, but they do have a phone and are veterans at making small charges onto a mobile bill.

“YouTube is good at getting views, but it’s not great at transactions,” he says.


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Evan Spiegel
Evan Spiegel
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“Right now, there’s so much pressure on CPMs you need an awful lot of eyeballs to make even a drop of money.”