SOURCE: Pike & Fischer

March 20, 2007 10:08 ET

User-Generated Content More Than a Fad

SILVER SPRING, MD -- (MARKET WIRE) -- March 20, 2007 -- The popularity of user-generated content sites such as YouTube and are not just a passing fad as some critics have suggested, and will create a wealth of new opportunities for advertisers and content creators, market research firm Pike & Fischer concludes in a new report.

The market for user-generated content (UGC), particularly video, will continue to grow thanks to a steady increase in broadband subscribers, and television advertisers shifting more and more of their promotions to the most popular Web sites, according to the report. The most successful UGC sites will thrive on their ease of use, their support for portable devices such as iPods, and fair compensation for contributors, Pike & Fischer says.

Advertising sales represents the primary revenue generator for the UGC business model, Pike & Fischer Senior Analyst Tim Deal found in an analysis of nearly 40 UGC sites. TV advertisers increasingly will shift their promotions to such user-generated content (UGC) sites to get better results than what they generate from traditional media, Deal says.

But the number of UGC sites will become too vast to support every player, and will result in significant consolidation within the next three years, Deal concludes. "This will occur as major media strive to create communities around traditional video programming and try to impose controls on proprietary content flowing over the Internet," he says.

Pike & Fischer, a BNA company, offers a host of legal and business information products covering the telecommunications industry. User-Generated Video on the Web: A Taxonomy and Market Outlook is priced at $595 and can be purchased at For analyst commentary or an executive summary, contact Tim Deal at 301-576-4096 /

For more information about Pike & Fischer's Broadband Advisory Services, visit or contact Jonathan Wentworth Ping at 212-576-8741 /

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