BUSINESS BLOGS
BUSINESS BLOGS
category: business
20 Feb 2009

“First of all, a lot of the riffraff is going to go out of business… it’s hard to compete with junk especially when they’re giving it away for free.”

That’s coming from EA’s boss, John Riccitiello.  Read more on EA’s plight, more here and here.

There’s two parts to that statement, the first part is about junk and the second part is about free.  But it speaks volumes about how much business has changed in the past 6 months.

When people put professional video on the same shelf as UGC, I know they’re clueless; the “riffraff” is going out of business… yet some people were dumb enough to think that advertisers would back UGC the way they would professional content. Right now it’s moot, as advertisers are taking a pass to catch their breath… which takes me to the next point: “especially when they’re giving it away for free”.

A lot of content companies give away their content… Look at our revenue breakdown:

We generated more revenue from licensing than syndication.  That’s because we don’t produce junk and don’t give it away for free.  Whatever business you’re in, these days, you should abide by those two mantras.