BUSINESS BLOGS
BUSINESS BLOGS
category: business
06 Nov 2006

I think like anything else, Revver’s business model - which consists of sharing revenue from ad deals with content creators/suppliers - might work for the top 1-5% of the content suppliers on the site, but for the majority of folks, it will not amount to much.

It’s a great PR startegy, and it lands them good coverage here and there in the mainstream media, but Revver’s founder criticism of YouTube sounds hollow if you ask me, cause over time 95-99% of content suppliers will be looking at tiny payouts, but in aggregate the balance of their payouts (which will go to Revver) will add up to a decent amount for Revver to survive.  And Revver (and all others) will need all the help they can get.  The YouTube/Google deal will be an overall negative for all of the other file sharing sites, will there be exceptions?  Of course.  There always are and Revver’s differentiating factor might make it one of the ones to survive when the music stops, but the economics are still largely in favor of Revver and not the content suppliers.

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