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Is Monetizing Video on the Internet Just a Dream?

When looking at the way things are going for most Internet video companies, one has to wonder if there is any money to be done with video.  There’s a lot of question regarding this complex technology.  After reading this morning that 12seconds will be shutting down this month, I can see that everyone will go wild and say that there’s no money to be made with video.

This all started with YouTube of course.  They had millions of videos on the site but not a real business model.  I still wonder if they are making any money.  That’s also what most people wonder.

Later, we saw Seesmic Video where Loic Le Meur tried to bring a Twitter-video concept to the masses.  However, it failed to captivate a momentum.  Why?  Probably too early by introducing video technology and also forcing users to sign-up to record a video.  Most people were still afraid of showing their faces to the webcam.  And forcing to create an account was one more step to discourage them.

When I started working on my Nimbb service, Seesmic was in its early days.  I was looking at their service, but my view of the business was way different.  I didn’t want users to sign-up for an account to record a video.  I didn’t want to do a Twitter-video service.  I just wanted to do video recording, and make it simple.

Yesterday, I was watching a video on called Video startups aren’t an easy sell.  I was watching this and a few things came to my mind.
First, that investors are really afraid of videos.  It’s like that if you come up with an idea that has the word "Video" in it, you can pretty much forget about getting the attention of potential investors.

Another thing that I saw is that investors always try to put Twitter in any project.  It feels like that if your idea doesn’t include the word "Twitter" in it, you can pretty much forget about getting the attention of potential investors.

Today, we have a very good example of a Video+Twitter business that went bankruptcy with  When the guys started this business, probably the word Video was still cool (I guess they started not long after  But today, by closing the service, they give one more reason for investors to be afraid of video.

I’ve been in San Francisco for 2 weeks now.  After meeting a lot of people, I can say that everyone is interested in video, but most of them still fear that.  Especially investors.

I think the problem with all those video services that are closing is that they didn’t have a viable business model.  Making money with video is something to be thought carefully from the beginning.  It’s not something you must do when you have millions of users, because it will be too late and you will lose all your money trying to keep your service running.

When I created Nimbb, I knew where I was going.  I knew that from day 1, I needed a strong business model to generate revenue.  I knew that I couldn’t wait to have millions of users before thinking about monetization.  So I built my entire service around a paying API.

No.  Monetizing video on the Internet is not a dream.  Nimbb is here to prove it.