Archive for June 10, 2010

FargoTube. The right solution at the right time?

Posted: June 10, 2010 by f3technologies in FargoTube, Uncategorized

The video-content industry is at an impasse.  The excitement of the online video technology sector brought on by the launch of YouTube in 2005 has seared online video into the conscious of people around the world. Viewers who once looked to television to provide them with their entertainment now find it easier to find the exact video content they need through a couple of clicks on the Internet.  Thousands of historically loyal cable subscribers are shaking off their ever-larger cable TV bills in favor of online video.  Ask a teenager nowadays where he or she watches the most video content — you may be surprised.  It may not be television.

But there’s a problem. What are content owners getting out of this new “free” era? The artists and giant studios that once dominated this space are finding it harder to stay profitable — even with unique and innovative content.  Advertising, once their main source of revenue, is scattering to the ends of the cable spectrum and the far corners of the Internet. Online ad revenue is significant only for a handful of content hosts such as YouTube and Hulu, and such hosts share little or none of the revenue with the videos’ creators and owners.

So what is the answer to this crisis for content owners?

We believe FargoTube will be the answer. FargoTube is the first online platform that lets content owners — such as musicians, record labels and film studios — create their own “tubes,” customized with their own brands and unique layouts. FargoTube turns online entertainment into revenue through three models:

Model 1: Subscription Tube

Content owners can set their own monthly subscription fees — from 99 cents to $10 or more. They can also decide whether and which viewers can upload their own videos, and even allow subscribers to upload and charge for videos. Videos play for several seconds in “preview” mode before giving the viewer the option of subscribing in order to view the rest of the video.

Model 2: Video Tube

Under the video tube model, videos uploaded to the tube are categorized as purchasable, rentable or pay-per-view (24-hour rentals). As with iTunes, videos play for a set time — typically 15 to 60 seconds — before informing the viewer that he or she must purchase or rent the video to see it in its entirety. The minimum price for buying or renting a video is 99 cents.

Model 3: Promoter Tube

The promoter tube allows owners to offer their content free of charge until one of two thresholds is met: 50 videos or 500 subscribers. After that, the tube’s creator is obliged to switch over to the subscription model or the video-tube model.

These three models give owners ways to monetize their entertainment and other video content on customized tubes, either embedded in their own websites or on an entirely new website. Owners can finally track and communicate with their own fans and provide media-centered social networks, bringing artists and fans together to celebrate shared passions.

With content owners all over the world trying to figure out the monetization problem, FargoTube may be the perfect solution at the perfect time…