Might Al Gore have the last laugh?

Filed in archive Business Trends on August 16, 2006

San Francisco Chronicle (via Online Media Daily)

It may have raised a collective Eyebrow when former Vice President Al Gore and Joel Hyatt introduced Current TV, the San Francisco-based user-generated cable and satellite channel. At first, critics worried that the channel would be overtly left-leaning. When that proved not to be the case, many still couldn't wrap their heads around Current's core concept: three- to seven-minute videos created by emerging filmmakers, citizen journalists and regular everyday users.

The Wall Street Journal called Current TV "newsless," adding that its content was "often clueless and usually dull." Current's total reach was also just 17 million, significantly less than the 40 million most big-shot advertisers require. However, fast-forward to today, and you see that Al Gore was onto something--he just may have chosen the wrong medium.

YouTube, the de facto online video sensation, borrowed heavily from Current TV's idea of short clips of user-created content. It placed fewer limitations on the site's content (its main purpose wasn't news), made the content on-demand, and accessible to more people by accepting all media file types. The strategy has obviously worked for YouTube.

But despite greater usage, Current is the one with the clearer ad model. In fact, it has pioneered a new concept in TV advertising: letting viewers create ads for its leading advertisers. Half of Sony and Toyota's spots on Current TV are actually made by the people watching them. Things are now looking up for the cable network: the co-creator of Comedy Central's "The Daily Show with Jon Stewart" is now creating a regular feature. Current's total reach is 30 million, and according to CEO Joel Hyatt, it's finally making a profit. - Read the whole story...