Report predicts rise in UGC and aggregators

Posted by Mica Swyers on July 17, 2007 at 9:37 AM

Following his analysis of Long Tail in 2006, Spencer Wang, an analyst for Bear Stearns, has published a second report that focuses on the rise of online video, particularly the user-generated variety, and its effects on aggregators in the market.

The key findings are as follows:

There is a strong demand for user-generated content (UGC), which already comprises 13% of today’s online traffic.
UGC can be monetized, and the survey findings indicate that users would necessarily oppose video advertising on the Web.
As with textual content, the rise in online video will lead to a value shift towards aggregators and navigation.
Great content is crucial, but because no one site consistently creates it, analysts have difficulty institutionalizing content creation.
Digital revenues still make up a very small percentage of total sales, particularly for newspapers.

Source: Paid Content

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