Lulu TV

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Lulu TV = video-sharing site with an innovative Revenue Sharing business model

URL = http://www.lulu.tv/


The Lulu TV business model

"The new revenue sharing strategy behind Lulu.tv is fairly simple. Anyone can post or view content for free, as with Google Video or YouTube. However, it offers a "pro" version, which charges users to post video. 80% of the fees paid by goes to an account and the money is distributed each month based on the number of unique downloads to subscribing members.

This strategy has a similar tone to the ideas of Terry Fisher (see Promises to Keep who has been promoting and the related idea of an Alternative Media Cooperative model. In Fisher's model, viewers (rather than the content creators) pay a media fee to view content and the collected revenues are redistributed to the creators in the cooperative. Lulu.tv makes logical adjustments to the Fisher model because other video sharing services are already offering their content for free. Because there are a lot more viewers of these sites than posters, the potential revenue has limited growth. However, I can imagine if the economic incentive becomes great enough, then the best content could gravitate to Lulu.tv and they could potentially charge viewers for that content. Alternatively, revenue from paid advertising could be added the pool of funds for "pro" users." (http://www.futureofthebook.org/blog/archives/2006/07/_lulutv_pushing_the_boundaries.html)