Saturday, February 19, 2011

The Problem with YouTube's Celebrity Buying

The problem is in the undervaluing of the celebrities it already has a lock on—a new generation of household names (just ask your 11 year old) like Shane Dawson, Ryan Higa, iJustine and MysteryGuitarMan. These top YouTube stars represent a leaner, post-TV-centric version of celebrity. They actively engage their audience (as themselves) across several social platforms, and operate with a unique creative freedom dictated primarily by those very fans themselves. On top of that, they know how to shoot cheaply while still generating several million views per episode. You think Snooki can shoot and edit her own videos?

Add to that, they have lock-in on the network that they spent the last 5 years growing right alongside. YouTube has an incredibly valuable hold on these stars and their millions of avid fans simply because of the sizable ad revenue sharing Partner Program which pays many of them well into six figures a year. Traditional celebrities don’t come with any lock-in, operating instead in a more transient model moving to whichever platform is paying the highest. Read More

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