Web video makers rake in millions

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19 September 2011 Last updated at 22:59 GMT By Matt Danzico and Ellie Stanton BBC News, Washington Online video content creators are now making significant amounts of money from a myriad of websites

Since the explosion of streaming video several years ago, hosting sites have become home to a crop of young video makers attracting devoted followings for everything from music and sketch comedy to make-up tips.

Meanwhile, online video has become a career for thousands of video creators, with some making hundreds of thousands of dollars each year.

And in an uncertain job market, many are finding ways to cash in on the opportunities afforded by web video.

As online video viewership has grown - YouTube reportedly draws 500 million unique visitors each month - marketers hope to take advantage of the dedicated audiences and low barriers to entry.

Six-figure incomes

Video creators in turn are making money from hosting sites such as YouTube, DailyMotion and Blip.tv, which share a portion of the profits derived from video and banner advertisements.

YouTube, for one, has distributed millions of dollars in advertising revenue to its 20,000 most popular amateur producers since 2007.

Blip.tv, which hosts the Annoying Orange comedy show describes its content as "the best in original web series"

"We share millions of dollars with our partners every year," said Tom Sly, the site's head of strategic partner development.

The amount advertisers pay varies with the popularity and quality of the videos, with creators receiving as much as $20 (£12.70) per thousand views.

"Across the board we're seeing those numbers increase as we see higher quality content and the ability to target users so that advertisers have more fine-grained control," Mr Sly said.

In 2010, the number of YouTube partners making over $1,000 (£600) per month from advertising revenue went up 300%, the company said.

The company declined to release specific figures, but Mr Sly said "hundreds" of video creators make more than $100,000 a year and "thousands" make more than $10,000 a year.

Sponsorship deals

The top performing web shows on Blip.tv are on target to take in more than $1m in advert revenue each, said Eric Mortensen, senior director of programming.

"There are certain class of people, and it's not that they are rejecting TV, they never even thought to be like TV in the first place," he said. "And because of that they are doing new and different things and that's how they end up making money."

Mike Michaud, who started online production company Channel Awesome after being losing a job at an electronics retailer, says the revenue he earns from host Blip.tv has enabled him to hire six full-time and two part-time staff members.

"I don't have the daily grind that a nine-to-five usually entails," Mr Michaud said.

"I wouldn't say I'm living comfortably just yet, but I am living much better than before."

Industry analysts say that online video audiences are loyal and attentive and feel a connection to the creators.

In addition to advert revenue sharing, some video creators make as much as $150,000 a year by cutting sponsorship deals with major companies, said former YouTube executive George Strompolos, founder of Fullscreen, a start-up that aims to facilitate connections between corporate sponsors and video creators.

Aware of the power of recommendations from such seemingly personal relationships, companies like Ford, GE, and Lancome are directly reaching out to video makers to hawk their products.

Rocketboom, which launched in 2004, was among the first US online programmes to make money

Online video creators work without the need for teams of agents, managers, markets and developers, Mr Strompolos said.

'Quit your job'

"Online video tends to be a one-stop shop solution," Mr Strompolos said.

"You get not only the creative development and the authenticity of voice you're looking for, but you also get distribution and reach."

As the online video advertising and merchandising infrastructures become more sophisticated, analysts say more and more people are likely to strike out on their own in web video.

"I see this becoming the new television, but a place where the average person has a much better chance of getting noticed and making money than if they were to go the traditional route via Hollywood," Mr Michaud said.

Alan Lastufka, author of YouTube: An Insider's Guide to Climbing the Charts, said: "The money may not always be headline-worthy, but it's enough to quit your day job, stay in the basement on your computer and spend your time connecting with fans."

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Able to return to Millions in California, Arizona and the Mexico

SAN DIEGO - utility crews brought electricity to much of California, Arizona and Mexico Friday, a day after a failure left millions of people on highways dark, paralyzed and interrupted electricity flights at the airport in San Diego.

Officials, however, warned that electricity was still too fragile, and asked residents and businesses to move easily over - or even put off using - major appliances such as air conditioners.

"Conservation will really help reduce the strain," Stephanie McCorkle said the operator of the system of the independent in California, which manages the power grid.

Electricity returned to San Diego early Friday, signaling that the blackout was essentially on because most of the affected people were in the eighth largest city in the nation. Schools of the city, State universities and community colleges in the region remained entering. Beaches were closed because the failure caused a spill of wastewater of $ 3.2 million - gallon.

The Mexico power utility has said that the lights are on for 1.1 million customers, or 97% of those who have lost power. Power was also restored to all 56,000 customers in Yuma, Ariz.

The San Diego region was particularly hard with collected power on 16 Thursday to all household customers and business of 1.4 million of San Diego Gas & Electric Co. has.

That has left residents without air conditioners are stifling and paralyse some traffic Highway and the airport.

The blackout extended in southern Orange County, through the Interior deserts of California, as far as Yuma and the Mexico. The region is the home of 6 million people, although it was impossible to say exactly how many had lost power.

The failure occurred after an electrical worker removed a piece of equipment to a power of southwestern Arizona of monitoring substation, officials based Phoenix Arizona Public Service Co. said.

It is therefore not clear that mishap, which normally would have been isolated, has attracted such widespread failure. The company said that would be the subject of an investigation.

"This was not a deliberate act." "The employee was just switching on a piece of equipment that was problematic,", a declared Daniel Froetscher, an APS Vice-President.

It is possible that extreme heat may also have caused some problems with the transmission lines, said Mike Niggli, chief operating officer of San Diego Gas & Electric Co.

During the night, a large part of San Diego was in the dark, and all outgoing flights based at its main airport, Lindbergh Field. The airfield was opened and had the power to Friday morning, but authorities said that some airlines have cancelled flights.

There was no immediate report of major injuries related to the failure. The authorities of San Diego and elsewhere said they were on alert, but no major problems had arisen, including the slightest sign of looting or other disorders.

There are reports of minor accidents as the crash caused mayhem in the streets without traffic during rush hour.

Leah Walden, 59, said she saw five swept on its drive of his work of accountant in suburban Spring Valley for a tasting of wedding cake to San Diego.

"People are irritated." "They don't want wait," said Walden, adding that about 15 cars had a setback on the highway turning off the highway of traffic sense opposite to escape traffic jams. "This is how nuts people."

In the city of Encinitas in the range to the North of San Diego, Tim Grenda, 41, put a positive spin, noting that its hot yoga class was cooler due to the failure. The class, usually conducted at 104 degrees, was closer to 99 degrees because an oven used for heat pump had been eliminated.

"It was hot enough for me, but this is not quite as intense as the usual practice," he said.

Rosa Maria Gonzales, a spokesman with the Imperial Irrigation District in sizzling California eastern desert, was less enthusiastic - temperatures were well on the territory of three figures when the power is turned off.

"It feels like you are in an oven and you cannot escape," she said.

The blackout extended South of the border in Tijuana, Mexicali and other cities in the State of Baja California to the Mexico, which are connected to the U.S. power grid, said Niggli. The police on both sides by reinforcements sent to prevent the crime of looting and other in their cities, but none were reported.

In the border city of Tijuana, people formed long lines outside stores Thursday, trying to buy ice or take advantage of the beer sold at half price. Many people drank this beer in the street or in the parked cars with loudspeakers for loud music booming.

Cars a form lines and in stations of rare gas generators which remained open and traffic seized streets after traffic lights stopped working.

Jose Padilla Flores, who was one of the few people who still had electricity Thursday, offered to let people watch the telenovela on its television if they bought fried tacos and water flavoured his small restaurant "Eldorado" in the neighbourhood of la Independencia.

"My female neighbours were the first to ask if I could let them watch the telenovela," said Padilla Flores, 35. "I thought it was a great idea to promote my business."

San Diego residents poured into the few bars that remained open downtown after dark, some donning reading lights on their heads as minors. A pair of men carried flaming torches tiki - usually planted in backyards - to see their way to the bottom of the street of pitch black.

"This is surreal, said Myrna Contreras, 35, sitting on the patio of a candle-lit bar." "". He is optimistic. "He is friendly.

Two reactors at a nuclear power plant along the coast went offline after losing power, but officials said that no there was no danger to the public or the workers.

The blackout came more than eight years after a more severe black fate in 2003 darkens a wide swath of the Midwest and Northeast. More than 50 million people were affected in this failure.

In 2001, failed experiment of California with the deregulation of the energy was widely blamed for six days of rolling blackouts that cut off electricity to more than 3 million customers and close the refrigerators, ATMs and traffic lights.

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