Welcome to aaron chua make money blog

Hi, welcome to my blog. In this part of my world, I talked about how to achieve financial freedom by learning how to make money online through creating sites and earning from them.

Below are some current and past make money projects that details my learning journey.

My current experiment in making 50 amazon site niches. If you have not been following this challenge, best place to start is this resource page for the amazon challenge, that lists all the articles that I have written so far.

My experiment in making 1000 a month through adsense in 9 months.

If you came here looking for low cost startup ideas, here are 140 startup ideas that you can browse through.

Friday, 17 April 2009

While Youtube is making losses, mobile Youtube clone is making money

Technovia has an interesting article talking about whether Youtube is the largest loss-making venture in history:

it’s still losing money hand over fist. As I mentioned earlier, a recent Credit Suisse report estimates it will lose a whopping $470 million this year.

The reason for that is simple: while its revenues should grow at a more-than-respectable 20% in 2009, the number of streams it serves will grow at a rate almost double that (38%).

Contrast this with SeeMeTv, a youtube clone on mobile that is making money. It has one big difference relative to Youtube: user has to pay for each view and the revenue was co-shared with the person who uploaded the video. On SeeMeTv, each user on average earns 12 pounds per video!

Why is this so? Why can SeeMeTv charge for its service and be profitable while Youtube, the third largest site in the world, is making losses?

One of the reason is that micro payment is handled very efficiently on the mobile platform. Because of this, each click can be billed. This alone opens up different revenue models.

Another reason is the different usage context. Mobile is often used in situations where the user has no other options for entertainment. He may be on public transport. He may be stuck in a queue. Why not just pay a bit of money to download a funny video and entertain himself while having nothing to do? This context is vastly different when one is sitting in front of a screen and having all the time in the world to find free content.

Ultimately, this boils down to the fact that the Web and the mobile are vastly different media. On mobile, it is possible to make money on social media. Video is just one example. The same can be said for social networks. Facebook and MySpace are struggling for revenue while CyWorld and Flirtomatic are bringing in the profits.

This is why I love mobile : )