…there’s still not much money in Web video advertising — certainly not enough to earn a profit on videos that cost anywhere from $5,000 to $25,000 each to produce….
Our article focuses on the remarkable number of quickly abandoned Web video efforts in Hollywood over the past few years. A few remain, however.
They all have slightly different strategies and models, but most of them share one of two defining characteristics that separate them from the space’s many failures: Web video serves a larger strategy and thus doesn’t need to earn a profit, or it’s being produced at virtually no cost.