Monetising User-Generated Content

Nicholas Carr writes:

The way the Web 1.0 dot-com pioneers used pricey computer gear, the Web 2.0 digital-media pioneers use bandwidth. They devour huge gobs of it. YouTube, Forbes’s Dan Frommer writes, is probably burning through a million bucks a month in bandwidth costs, a number that’s going up as rapidly as its traffic. Follow the money. In this case, as Frommer reports, the trail will lead you to Limelight Networks, which YouTube uses to stream all that user-generated content – like 200 terabytes a day – back to us users. Once again, it looks like it’s the suppliers – in this case, the content delivery networks – that are positioned to be the most reliable money-makers as more and more investment pours into the creation of our vaster, user-generated wasteland.

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Rajesh Jain

An Entrepreneur based in Mumbai, India.