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Whats the value of a video sharing site ?

Discussion in 'Social Networking Sites' started by proroy, Nov 6, 2008.

  1. proroy

    proroy Junior Member

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    Ok, in my current list of plans I have given a place for a video sharing website :cool:

    I need some quick insight from my fellow BHW'ers regarding the current value of a video sharing site and what should be my steps to market such a website.

    I have seen a craze for video sharing sites, but I am not so much aware about the possible resale value for such a website? Also, if I am to retain the website for long term, what quantity of traffic should pull in good $$$ from advertisements? Also, how long should I continue promoting the site before I actually get to see good traffic signing up and actually uploading and sharing stuff.

    I found the ClipBucket script quite cool for this but I am unsure about the kind of hosting I should opt for. Definitely I am not gonna start with dedicated hosting, but rather something thats cheap but is fast for end-user access.

    Your responses gonna help for sure :)
     
    Last edited: Nov 6, 2008
  2. proroy

    proroy Junior Member

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    Really looking for some answers to this thread . Do you really think its profitable to create a video sharing site, have say around 300-400 accounts created with around 500 videos uploaded? Whats the price we can expect for such site, provided I take the flipping route after a month or so.
     
  3. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    It would be kind of tough competiting with Youtube and the 20 other video sharing sites who are already established, would it not?

    I guess if you specialized and made a niche video site it might not be as bad. i.e. Strictly video game movies or something to that effect.
     
  4. mattstrike

    mattstrike Regular Member

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    It is really difficult to give a precise answer because there are so many variables involved.

    The conservative approach to measuring the value of any site (or business for that matter) is to take the net pre-dividend annual profit, and apply a multiplier to it, depending on what kind of business it is. Multipliers anywhere from 1 to 10 are pretty common, although online businesses tend to get valued toward the lower end of that spectrum, unless they have mass brand recognition (the perception of risk is high).

    If you are looking to flip the site, you'll be wanting to use a more aggressive model. Often times people will use a "Hypothetical Future Value" model, which takes things like current growth rates into account. At the end of the day, the valuation is still done in much the same way as the first method, but instead of using current annual income, you use a hypothetical future annual income from 2 to 5 years into the future.

    The big thing that someone will be looking for is growth and activity, so the number of accounts and the number of videos is probably less important than being able to show that you have a 10% per month growth rate (or whatever it is, but the higher the better).

    Also, bear in mind that these sites ultimately make money from advertising, so the real number will always be visitors, not participants.

    In terms of hosting, there are some shared hosting providers that specialize in video sites, and I would suggest going with them because in order to run a video site, the server will have to have FFMPEG installed (to re-encode the videos in .flv). Most shared hosts will not have this, and will not be willing to enable it. You'll want to watch your hosting like a hawk, though, because the busier your site gets, the more difficult migration will be, and yet, the more likely it will need migration.

    Best of luck.
     
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  5. mrlimit

    mrlimit Registered Member

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    Mattstrike thanks for the usefull info man cuzz i was stuck on one of the vid scripts on shared host and i just gave up after a couple of days vids just wouldn't get saved... now off to a new start ...
     
  6. mattstrike

    mattstrike Regular Member

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    Glad I could be of help.

    You might want to double check all of the requirements that your video script has, but in my experience, most of those scripts have the same requirements as most other AMP type scripts, plus the FFMPEG requirement. I would search for "<name of script> hosting" to find hosts that explicitly support the script you are using, at least as a starting point.
     
  7. viewsonic

    viewsonic Regular Member

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    i can answer your questions.

    In the last 18months there has been about 10 private sales for entertainment/ funny video sites. 30,000 visitors/day = $1-2million

    its normally 20-40% cash and the rest in stock. TV advertising is $20 to 40CPM per ad, alot of that advertising money is heading to the web because of the ability to target audiences & have straight direct response to sales page. TV cant do that.

    Its very very doable to get 30,000UV/day with a video site. 100,000+UV/day in a year is doable but requires a team & cash.

    If you look at how cable TV is broken up in to genre & niches & then think of a website as a cable Tv channel, thats the future. Youtube can never be everything to everyone. Because it can never have a personality or community that appeals to everyone. There's all that traffic in the one spot for us to steal ;)

    If are going to do video get a server or don't bother. load speeds make or break you for video stuff. No repeat traffic = Epic Fail
     
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  8. joy_joy

    joy_joy Junior Member

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    do you have couple of million dollars to spare. If yes buy some tv ads and you will get a jump start for your video site.

    As for revenues. you will need to think something out of the box. Google is doing audio to text conversions to understand the video content and it will display ads based on that. Maybe they will open it for others too.

    I don't know how they plan to share revenue with video owners.
     
  9. Therookie

    Therookie BANNED BANNED

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    Go here
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