Isn’t Video Cheap to Produce These Days?

Posted in Content
Most folks want to make money with their video, that’s why they can afford to have it produced. All video has a cost, unless you consider time of no value. Cost can typically be assessed based on the amount of time it takes to produce a finished minute, multiplied by the bill rate of the producing entity. A television commercial might cost $500,000 per finished minute or more. Your college kid might produce a video for your company for free, but it may cost you concert tickets for him/her and a group of friends. A 10 minute video might cost you 5 tickets at $75 each – $37.50 per minute.
Typically I hear one of the following:
– I want to sell more of my product or service using video (promotion)
– I want to serve ads against my video (maximize the price per 1,000 views, or CPM)
– I want another company to purchase the rights to show my video (syndication)
– I want to have someone pay to see my video (pay-per-view or membership)
Yes, some people want to become famous with their video, with no regards for monetory compensation. These are the people that normally get kinda bitter once they succeed and their video is being watched by millions on YouTube – for free. If you have good content, it is worth money. How to get it, and how much to charge, are the big questions.
I’ll dig into each of these drivers over the next few days, and discuss pros and cons of various options and approaches.

With advances in technology over the past decade has come a new era of video production that enables someone with a nice Mac and a decent camera to produce video that used to require hundreds of thousands of dollars in equipment and software.   That doesn’t mean that everyone with a decent computer and camera can produce high quality, professional video.    If you’re going to produce a video that involves your brand, or projects the quality of your firm, you should be very careful about how you go about acquiring the talent to produce the final piece.  As most of us have seen on TV, a cheap commercial looks cheap.   The key here is to use a person or company who’s work and working relationships you have soundly researched.    It is a competitive marketplace in the video production world, so you should be able to negotiate a great price even with experienced, highly recommended producers.

All video has production costs. Cost can typically be assessed based on the amount of time it takes to produce a finished minute, multiplied by the bill rate of the producing entity. A television commercial might cost $500,000 per finished minute or more. Your college kid might produce a video for your company for free, but it may cost you concert tickets for him/her and a group of friends. A 10 minute video might cost you 5 tickets at $75 each – $37.50 per minute.

Typically I hear one of the following:

  • I want to sell more of my product or service using video (promotion)
  • I want to serve ads against my video (maximize the price per 1,000 views, or CPM)
  • I want another company to purchase the rights to show my video (syndication)
  • I want to have someone pay to see my video (pay-per-view or membership)

Yes, some people want to become famous with their video, with no regards for monetory compensation. These are the people that normally get kinda bitter once they succeed and their video is being watched by millions on YouTube – for free. If you have good content, it is worth money.   You can definitely see the difference when video is professionally produced verses something produced by an amateur (me, for instance!).  I have seen many, many clients try and produce video “on the cheap” with disappointing results.   With all the advances in technology you can expect to pay less today, though, than you might have paid several years to have the same production quality.

I’ll dig into each of these drivers over the next few posts, and discuss pros and cons of various options and approaches.

Posted by Chuck Ebbets   @   16 September 2009

Like this post? Share it!

RSS Digg Twitter StumbleUpon Delicious Technorati Facebook

0 Comments

No comments yet. Be the first to leave a comment !
Leave a Comment

Name

Email

Website

Previous Post
«
Next Post
»
Powered by Wordpress   |   Lunated designed by ZenVerse