Many are playing down the fact that YouTube made a little over $10K from 5 independent films in 10days.
When I first saw the news I thought it was a good number. The engineer in me forced me to extrapolate the potential. Let me explain.
1. 5 movies were used as a test.
2. of the 5 movies, they were independent films. Which means they grossly lack critical mass.
3. it was 10 days.
This tells us a few things.
1. Basic Algebra: YouTube made $1K a day ($10K/10) from movies not designated to a mass audience.
2. Obviously there are people who are willing to rent videos off of YouTube.
3. If #2 exists, and the YouTube library expands nicely to titles that have more critical mass, we will obviously see more revenue coming in. And it will come in exponentially.
3. With #2, and an expanded library of movies/tv shows/'pay for clips', a subscription models is definitely in the cards. Especially since devices like Apple TV allow you to stream YouTube video. And the more inclined techies know how to connect their laptops/computers to their TV to watch the video directly on a big screen.
Ladies and Gents, this is good news. YouTube is correctly attacking all sides of the video angle from advertising, to ala chart and eventually subscriptions.
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