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Wallstrip RIP

By Jeff Trexler on January 7, 2009 8:05 PM | | | Comments (18)

Via See3's Michael Hoffman, it's more-or-less official: Wallstrip is dead.

Wallstrip, for those of you who never watched it, was a fun and informative video site dedicated to explaining the world of Wall Street. Good production values, sharp writing, engaging wit--Wallstrip was often a model of how educational video could work.

Making money, though, was not its strong suit.

And that's the thing. I've had social enterprise folks approach me about doing online video, but the pitch is typically accompanied by starry-eyed visions of making millions of dollars from productions that didn't have one-tenth of Wallstrip's infrastructure support. Funding operations through online educational media is a lot more difficult than a lot of folks think--and if the Wallstrip example isn't enough, just take a look at how many educational & charitable podcast series die after a few episodes.

Adam Ostrow's conclusion is spot-on:

The problem here is a simple economic one: though relatively inexpensive to produce and distribute (compared to network or cable TV), the costs of professionally produced online video are exceeding the revenue being generated by ads. And that’s a problem that’s not likely to be solved soon between the economic slowdown and the fact that the revenue that’s out there is flowing towards big media content being re-purposed for the Web. In fact, despite being 20x smaller in terms of video views, some estimates have Hulu catching up to YouTube in revenue this year.

Will we still see individuals making a living from compelling online video that spreads virally? Absolutely. But the economics of trying to re-create the network television experience on the Web are quickly falling apart, and unless either the audience suddenly surges or the ad market quickly pulls a 180, WallStrip’s demise could just be a sign of what’s to come.

Below: a couple of classic Wallstrip episodes:

Marrying for health care

Glengarry Glen Salesforce

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