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by Mike Zazaian October 30, 2006 - 2:48pm, 11 Comments

 YouTube Clone Pays Cash for Clips

Online video provider Metacafe launched a service today called Producer Rewards, paying cash to users who upload the most interesting and entertaining clips.

Metacafe uses a team of over 100,000 volunteer reviewers to pick the cream of the crop from millions of user-submitted videos. All videos must be owned by the submitter, with everyone involved in the video signing a consent form prior to an accepted video being posted. As the screening process is much more rigorous than YouTube’s, Metacafe ensures that no copyright-violating videos are uploaded, avoiding the legal pitfalls that similar companies have faced.

Once the submission process is complete videos are opened to the public, generating revenue with either post-roll or pre-roll advertisements. After a video has received 20,000 views, a mark which over 30 percent of Metacafe videos achieve, the submitter receives $5 in cash per 1,000 views. Said Arik Czerniak, CEO and co-founder of Metacafe:

People who watch video on the web are hungry for good content, and they are ready to consume a lot of it. You could put your video on YouTube and get a lot of views, but you have to actively market yourself in order to be heard over all the noise. Or, you could post it to Metacafe where we have developed a process that lets the best videos get played immediately so they can start earning you real money.

Metacafe, which recently relocated from Tel Aviv, Israel, to Palo Alto, says that it paid a user $23,000 after his video was viewed 4.5 million times. Metacafe is also friendly to producers in that it doesn’t require exclusive rights in order for a video to be profitable. Users can upload videos to Metacafe and still retain original rights to the video, allowing them to publish videos in other formats or even on other online video sites.

Metacafe currently boasts over 1 million visitors per day, with about 15 million daily videos played across the site. YouTube, by comparison, facilitates over 100 million daily video views. But even with a smaller audience, analysts feel that Metacafe’s format give the site enormous growth potential.

Metacafe’s model is a powerful way of persuading users to publish on one site rather than the other, said Joe Laszlo, a senior analyst at JupiterResearch, Since there are so many producers of video content right now, competition is bound to heat up.

Via Wired
Check out the Metacafe homepage