Web video is all around, but business model is elusive
By PETER CARANICAS
Posted: Thu., Nov. 25, 2010, 4:00am PT
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Fun Little Movies, which claims to be the first online comedy video channel, is one company that derives income from a dual stream of subscriptions and branded entertainment, a subset within the advertising model.
Since 2004, the company has been supplying material to Sprint’s mobile network, with the carrier charging customers $4.95 a month for the channel. Company founder Frank Chindamo, who says Sprint won’t let him disclose subscriber numbers, has also branched out into what he calls “advertainment,” One example: “Bea Wildered,” a Web series of ecology-themed animated shorts commissioned by Discovery Communications’ Planet Green.
“The (return on investment) in TV commercials is going down,” Chindamo says, and marketers are increasingly looking to “embed the message of the brand within the body of the entertainment, yet still provide entertaining content. It’s really hard to do it well.”
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