Knowledge@Wharton writes that business models are still fuzzy.
Questions about the online video market remain. What will ultimately become of all the wheeling and dealing in the online video market? What are the most important technologies needed to expand online video? Can online video startups find viable business models? And aren’t all parties simply hedging their bets since it’s unclear which online video distribution models will win out?
To some degree, the online video market today involves companies — a Stifel Nicolaus & Company report names 25 major players — putting their chips in multiple areas to see which bet pays off, explains Kendall Whitehouse, senior director of IT for Wharton. “From the studio’s standpoint, you want to learn the business models because you don’t want [users of peer-to-peer file sharing technologies like] BitTorrent running off with your content,” he says. “From the startup side, these companies are also looking for a business model and for credibility — they don’t want to become the next Napster.”