Digitas and it’s newly formed brand content division, The Third Act:, held their first ever Digital Content NewFront ’08 yesterday in Chelsea, where video content production companies showcased their original, web-specific video productions and discussed the state of original online video content in front of a standing room only audience of fellow producers, agency folks and advertisers. There were around a dozen different companies from the space, including ABC/Disney’s Stage9, showing their sizzle reels and participating in panel discussions.

While there was a disagreement over whether the internet has seen its first real original video hit and how “hit” status should be determined, there were some very consistent themes across panels and companies. Most notably, a repeated theme was that original video content produced specifically for the web presents advertisers with a chance to get involved early in the process of production with the content creators (writers, directors, editors, producers). Rather than “lease” an association with content via a :30 spot in a TV show pod, brands have a unique opportunity to “own” original content in an evergreen fashion through brand integration and product placement.

Questions remained on the overall efficacy and ROI such initiatives would yield the advertisers, and that leads to a bigger question on how many forward thinking brand marketers would be willing to take a risk and invest in the plethora of content now available. The NewFront however, did a respectable job in helping present the opportunity to advertisers and was a solid step in moving this dynamic segment of the online video landscape forward.

- Gian Lombardi

It used to be that it cost millions of dollars to produce high-quality programming, and it was only possible by the privileged few. Nowadays, everyone with a mid-range Apple and an HD camcorder can become producers, directors and, if necessary actors. Of course, most made-for-the-Internet productions or webisodes are not 22 minutes with built-in story breaks at particular times suited for TV. They tend to be shorter, and the lengths vary.

The trend towards this type of programming has hit the studios as well, with Stage 9, an offshoot of ABC announcing a series of programming tailored for the web. It makes sense. It’s cheaper, far cheaper, than a TV show, and so this programming choice requires less money from advertising and sponsorship in order to break even. And the syndication choices are far greater, Stage 9 can release the show on ABC.com, a couple of other sites, give advertisers some sort of share of voice or exclusivity and then make a further release (think reruns on TV) all over the place.

What is the best form of advertising for this type of content? Sponsorships are going to be the norm for a while, but we at YuMe will be trying everything, to see what user’s respond to the most. Maybe a combination of a 15 second pre-roll, with a few contextually placed overlays, followed by a post-roll announcing the next episode? We’ll let you know.

- Jayant Kadambi

Could the writer’s strike in Hollywood be misguided and premature? In a Q&A with adage.com this week, former Disney chief Michael Eisner slammed the writers for walking off the job to pursue non-existent revenue. The state of online video is still feeling its way through some growing pains as business models start to shift from teenage hi-jinks on YouTube to professional, network quality broadcasts on a growing number of branded Web sites, including abc.com and NBC’s Hulu venture.

But what really struck a chord with us at YuMe were Eisner’s comments on the pricing structure – or lack of – for that entertainment. To drive down the pricing, the audience needs to grow. And to grow the audience, you need a distribution platform. Hmmm…sounds a lot like what we do here at YuMe.

“There are no gatekeepers,” Eisner said. “You don’t have to be on iTunes, you don’t have to be on Comcast. You don’t have to be on ABC. You don’t have to get approval of anybody. And eventually, advertisers are going to see the benefit of content that’s produced in a superior way, with better emotional hinges, and those people will have a good business.”

That makes sense to us. And as the builders of that platform, we’re ready to help advertisers and content publishers to take online distribution to that next level.

Jayant Kadambi