To accompany this article a series of interviews were recorded with such business leaders as Over the horizon: What next for user-generated content?
There's little doubt that user-generated content is going to continue its exponential rise, pulling in vast audiences and attracting an increasing share of advertising dollars. The big questions relate to the models that are going to succeed and the ‘killer applications' that will deliver content-hungry users in ready-to-spend mode.
Helping businesses see around the corner
With a strong track record in both the media and internet spaces, 3i is experienced at working with bold operators to seize the opportunities offered by user-generated content.
Daniel Waterhouse has led 3i's global internet investment activities for eight years , spanning the outstanding success with Fotolog and the exciting investment in Demand Media. In Daniel's view, there are few absolutes: ‘One feature of many emerging platforms is their hybrid nature. They blend online and offline presences, and mingle professional- and user-generated content - all in a highly-targeted way. At the same time, they play strongly to real-world trends, so web content is bite-sized, conversational and relevant, meeting the needs of time-poor consumers.
Daniel Waterhouse l Listen to the podcast
‘Because 3i invests in traditional media companies and pure internet players, we have a breadth of understanding that makes us an ideal partner for both. In essence, it's about seeing around the corner and devising effective new ways to distribute content and attract audiences that advertisers will value. We can help businesses do that, whether they have a history going back decades or are just starting out.'
Video: An explosion waiting to happen
As organisations ponder which area of content is set to make the biggest impact, a strong consensus is emerging: video.
Already there are over 120 million online video viewers in the US and this is expected to approach 160 million by 2010. Jeff Henry places immediacy at the heart of video's unique appeal: ‘It's particularly relevant for news events like the 7/7 bombings and the floods. With the growth of video capture in devices, I can see a place within a news environment for more and more user-generated content.'
Richard Rosenblatt l Listen to the podcast
With user-produced videos already a key component of the Demand Media stable, Richard Rosenblatt strongly agrees: ‘We think video is extremely valuable and clearly the next wave. The views on YouTube are over 100 million a day, so that's enough to convince anybody that it's here to stay.
‘When we integrate video into our sites, we find that people are consuming it and it's growing like crazy. We're seeing the most growth from the video assets that we put up. I think that there are still a lot of challenges that people have to understand on how to create valid video content, how to distribute it, and more importantly, how it gets monetised. But I think we're helping to lead the pack in figuring that out.
‘Google AdSense fuelled the tremendous growth of the long tail of media - all those websites that couldn't exist before Google found a way to monetise their niche content. As soon as someone figures out the Google AdSense for video, it's just going to explode.'