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Is Web Video (Still) A Bust? — 5/12/2009 1:30 PM

The internet has truly proven itself a capable place to distribute video — Americans watched 14.5 billion videos online in March, according to comScore. That’s a LOT of videos!!!

However, the most popular web videos — and the streams most likely to generate revenue for their producers — are still offline-first productions like TV shows and music videos.

While YouTube attracts massive audiences, the vast majority of its Web-original stuff isn’t making “real” money. According them, to “hundreds of YouTube partners are making thousands of dollars a month.” But most YouTube producers can’t quit their day jobs.

Revision3, arguably the most successful Web-first production shops, will be happy to clear $10 million in sales this year, despite a big hit in “Diggnation.” That’s not a trivial amount of money (I’d love to have it!), but it’s nothing like broadcast or cable TV.

FunnyOrDie’s most successful video of all time is still one of its first: “The Landlord.” Their next-best video has had 1/6 of the views.

Someday someone will figure out the right combination of original Web video content and sponsorship that mints money. While we are all at it, your best bet is to put up your trailer here, on Million Dollar Web TV, for guaranteed long-term exposure.

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