Here’s an excerpt from this Fast Company article showing how explosive the online video industry is:
With some 18 billion videos streamed online in 2005–up 50% from 2004–it’s not surprising that new businesses are sprouting up around this digital explosion. Each day on YouTube, more than 40 million video views are delivered and 35,000 new clips are uploaded. Google and Yahoo have video search sites and large caches of moving content. Apple’s iTunes Music Store sold 12 million video clips for $1.99 each over the span of just a few months. A new company out of Berkeley, California, called Dabble is vying to become a micro movie studio for the masses by inviting users to create, remix, browse, and organize video online. These aggregators are fast becoming the central nodes of an entirely new video marketing and distribution system, one far from Hollywood’s control.
Like Wayne Gretzy reportedly said, “I skate to where the puck is going, not to where it has been.”
If you want to have fun and make it big, start a company in a fast growth industry. Do something new, something innovative. Don’t just go copy some other business model that anyone else could do just as well. Be different. Be cutting edge.
At Provo Labs (an incubator), we try to invest in areas where there is significant growth. Starting a business in an explosive growth industry gives you a much better chance to get to profitability than if you are trying to compete with a lot of other players in a no-growth industry, where you are all fighting each other for the same customers.
But with online video, there will be billions spent in this space over the next few years, and a lot of new companies will succeed. Look at what has just happened in the last six months. YouTube’s Alexa chart is the best I have ever seen. It validates the online video space like nothing else.
In addition to renegade videos we will be launching some new technology and an innovative distribution model in the next 60 days.
The company is building a great management team. We are working with some great customers, and our revenues are growing each month. We are launching a major partnership with a well known online company in July. We have some new technology and distribution announcements coming soon as well.
We think we have a very cool and unique business concept. Nothing is unique on the internet for long, however, so we know we will be in a race with players large and small.
I launched 10x Marketing, a search engine marketing company, back in early 2002. We were pretty early in that space and the company has been fairly successful.
But our feeling is that 10Speed Media is catching this online video wave even earlier than 10x Marketing caught the search engine wave.
Hopefully 10Speed will end up 10x or 100x bigger than 10x Marketing.
(Don’t ask me why we keep starting companies that being with 10. Originally it was because in any alphabetical list, digits are ranked higher than letters. So 10x outranks just about any other company, including AAA Plumbing.) If you look in the yellow pages, most companies seem to start with an A. You always want to be listed first.
Well online, the numbers help a lot. Back in 1997, at Ancestry.com we were very happy when AGLL (American Genealogical Lending Library) changed its name to Heritage Quest. That gave us a slight advantage whenever people showed genealogy companies in an alphabetical list.
The advantage today is much smaller that it was a few years ago because a lot of directories are not alphabetical anymore, they are sorted by something else. Like Google’s directory is sorted by Page Rank. (See this example from Google’s Directory of Online Broadcast Video Shows.) Other directories are sorted by popularity. So this 10x strategy really isn’t a big deal anymore. (And the branding is getting confusing!)