According to Screen Digest, the user generated online video market (UGOV) exploded in 2006 and by the end of the year, user generated videos made up 47% of the total online video market in the US.

Soon, by 2010 more than half (exactly 55%) of all the video content consumed online in the US will be user generated, representing 44 billion video streams.

Albeit the huge numbers, user generated videos will make up just 15% of the total revenues. The ad revenues will grow from $200m in 2006 to almost $900m by 2010.

The last piece is not too exciting. It means that the revenues for user generated videos are not as fast to mature.

Video podcasters and other in-house video producers should focus on finding a business model that really works for them before jumping in the trend.

According to the report, there are five business models that are being used to make money from UGOV:

• Advertising
• Content Licensing
• D Commerce (digital sales and rental of premium movie and TV content)
• Subscriptions
• Technology Licensing

[Screen Digest]
Related: Podcast Monetization.

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