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Hyped web video sector starts to hurt
November 18, 2008Media Week
In recent weeks, companies ranging from pure Web production firms like 60Frames and Revision3 to branded video sites like Break.com to aggregators such as Veoh have all had layoffs. At the same time, several high profile original Web series have disappointed.
While layoffs may indicate prudence rather than panic, many predict that further casualties are on the horizon as venture capital and ad support are likely to become constrained by the recession. Insiders say that simply too many companies rushed into the space before business models and viewership patterns were firmly established. “There was a lot of cheap money out there,” explained Jake Zim, COO Safran Digital Group, who added that last year’s writers strike accelerated the flood. “It created more product than there is demand for.”
Read the full story in Media Week
Posted on Nov 17, 2008 - 10:59 AM
In recent weeks, companies ranging from pure Web production firms like 60Frames and Revision3 to branded video sites like Break.com to aggregators such as Veoh have all had layoffs. At the same time, several high profile original Web series have disappointed.
While layoffs may indicate prudence rather than panic, many predict that further casualties are on the horizon as venture capital and ad support are likely to become constrained by the recession. Insiders say that simply too many companies rushed into the space before business models and viewership patterns were firmly established. “There was a lot of cheap money out there,” explained Jake Zim, COO Safran Digital Group, who added that last year’s writers strike accelerated the flood. “It created more product than there is demand for.”
Read the full story in Media Week
