The psychsters over at Psychster Inc. have done something that media creators have been clamoring for ever since the collapse of the first internet bubble a decade ago.  They released a study looking at how engaged web users become with video content.  One of the continual challenges for web producers is how to effectively evaluate the cost benefit ratio of developing and distributing rich multimedia content online.  Consumers have more video choices now than they have ever had before, but video producers, directors, editors and writers are being squeezed by the emegence of “content farms” that produce very low cost (and sometimes low quality) video content for web sites.

There is a growing debate among media pundits and economists alike about the inflated valuations of tech companies like Groupon and Facebook.  These voices have raised the specter of a new and potentially bigger tech bubble developing.  Facebook, Google’s YouTube and other Web 2.0 giants have all pioneered business models based on user generated content—not professionally produced content.  Psychster’s recently posted study looks at the effectiveness of online video content in relation to production values.  In short, the study asks the question:  do web users engage with professionally produced video content more than they do with cheaper content?  Why is this important?  Lets back up a little and look at how video on the web has evolved over the last decade. Continue reading Content is King. Long Live the King!