WatchMojo CEO Ashkan Karbasfrooshan, recently published a post on TechCrunch regarding possible mergers and acquisitions in the online video space.
Each of the highlighted companies are technology companies — not content companies. In January, I published an article questioning the value of digital-only content. I concluded that digital content has little to no value, compared to traditional media properties.
Digital content producers fail to realize that content is only valuable if it’s unique. Most online-video shows are news shows and feature topics that are often covered by dozens of sites everyday. Furthermore, producing content that is easy to duplicate is the least valuable asset for a media company.
On the other hand, technology is innovative. It has value. And, more often than not, it has a far-reaching impact. For example, AP’s live coverage of the ‘Oscar’s Red Carpet’ reached more than 100,000 viewers. Building and sustaining this platform is not easy. However, the site successfully handled that traffic.
Another important insight from Ashkan’s article is that the acquirers are either in the technology space or the media/entertainment space. In an ideal situation, most of these platforms should be acquired by technology companies so that they continue to innovate and develop standards.
