Friday
Feb272009
Video Startups Are Jumping Ship - After Jumping The Shark
Friday, February 27, 2009 at 08:30AM
Jason Calacanis called this one a while back with his heatedly debated "Startup Depression," startups are in trouble these days. Adding more weight to his predictions, we are now coming to a shakeout in the online video startup sector. According to the NewTeeVee blog, we should be looking for 60Frames and ManiaTV to be purchased/disappear in the near future.
This is not even the first time we have been seeing frantic activity in the video sector. There were rumors of Revver kicking the bucket, it is still alive somehow, but its poor health is well known. What can we expect from any of these startups? We need to remember that they are all in one way or anothing chasing YouTube, which is not profitable.
So what happens when you have a whole funded wave of startups chasing a profitless ideal? It is not a shock at all that skittish investors are pulling away from this sector. Ad revenues and rates are plummeting across the internet. Revver even pays out a large chunk its small revenues to its content providers.
Past all of that, how important are these websites?
Not very. No hope of profits? Check. Running out of cash? Check. Limited audience? Check. Who in their right mind is going to buy one of these outfits?
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