MEDIA AND BROADCASTING

UGC vs. Premium: Is the video valuation bubble big enough to burst?

HANNA KAHLERT | May 21, 2021

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The market disconnect between the proliferation of independent content creators and the consolidation of brand IP into the hands of ever-fewer major players is growing increasingly stark.

On the one hand, independent artists are the fastest-growing sector of the music market. User-generated content (UGC) has proved a huge success during lockdown for the likes of TikTok and Roblox. The traditional brand celebrity spokesperson has ceded ground to the influencer, and even they to the micro-influencer. Content proliferation has driven increasingly niche content to niche audiences, finding smaller fan bases to resonate with instead of attempting the now nigh-impossible cut-through to mainstream popularity. This is the paradox of small: the long tail accounts for a growing share of content consumption, but the fractional economics of on-demand environments means that those in the long tail earn too little to be economically sustainable. Access to the means of distribution may have been democratised, but access to meaningful rights income has not.

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Spotlight

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Comcast Technology Solutions, a division of Comcast Cable, brings innovations from Comcast to the advertiser, content provider, global operator, and technology industries — providing solutions to our collective challenges and helping to forge a shared vision for the future. Built on Comcast’s know-how, proven facilities, platforms, and infrastructure, Comcast Technology Solutions offers more than 20 years of real-world broadcast and digital experience. We deliver technology beyond expectations to help customers develop new business models and transform the customer experience.

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