UPDATED: User generated content bubble popping

Summary:[Updated: To clarify Videoegg is not closing, it is closing its doors to user generated content.]User generated content was supposed to be a goldmine.

[Updated: To clarify Videoegg is not closing, it is closing its doors to user generated content.] User generated content was supposed to be a goldmine. Get users to generate text, photos, videos and then they tell all their friends and family and you monetize all that free content, free marketing and free traffic.

Well, it doesn't quite work that way.

Videoegg is closing its doors to user generated content and told its users on April 1st that they should come and download their content off of its servers by the end of May. Stage6, another video hosting site closed down completely earlier this year.

my.videoegg.com will be decommissioned and services will end as of May 31, 2008. Upload features have already been disabled. Please plan accordingly and see the FAQ for more information.

There are well over a hundred similar sites just in the video space. This is bad news for user generated content if we see more of this.

Why should users go to all that trouble of creating and uploading and then marketing their stuff to their friends and families if their content might not be there in a few months or a year? They won't.

What's the future? Host it on your family server. We'll have an always-on broadband wireless world sooner than later, and we have tons of cheap storage. (We don't need no stinking YouTube servers.... :-)

Topics: Telcos, Networking, Servers


In May 2004, Tom Foremski became the first journalist to leave a major newspaper, the Financial Times, to become a full-time journalist blogger. He writes the popular news blog Silicon Valley Watcher--reporting on the business of Silicon Valley. Tom arrived in San Francisco in 1984, and has covered US technology markets for leading comput... Full Bio

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