There has been quite a bit of talk regarding online video content, especially the videos that fall into the “viral” or “contagious” category. First let’s look at what does it mean to be contagious? Dictionary.com gives the following details:

1. Capable of being transmitted by bodily contact with an infected person or object: contagious diseases.
2. Tending to spread from person to person, e.g.:contagious laughter.

I like to think of “contagious” or “viral” online videos as falling into one of these two categories:

1. Contagious like a disease: these are the videos that hurt the online video industry.
2. Contagious like laughter: these are the videos that expand the indutry in a way that is strategic and forward thinking.

A couple weeks back I heard about the newest viral video to hit the Internet: “Why every guy should buy their girlfriend a Wii fit“. This video joins the ranks of: girl eating a bug, numa numa, along with many others. And for all your viewing pleasure I’ve placed it below:

Within a couple weeks over 4.6 million viewers watched this girl “working out” on the Wii. Even though this particular video was most likely a clever marketing ploy by Nintendo it made me contemplate the damage that Youtube has done to the online video industry. Let’s look once again at Youtube’s basic business model:

- Illegally leverage copyrighted content in order to gain online viewership

- Have no revenues compared to costs

- Set a dangerous precedent as to what a real business is

Why would I analogize youtube/poor quality viral videos to a disease? Because it is damaging an entire online video marketplace. Yes, these videos are entertaining and they have become a part of everyday life, however advertisers are not lining out the door wishing to have their brand associated with this type of media. In fact, Google, who has one of the largest online ad sales enterprises in the world, can’t come close to selling 100% of their inventory and making Youtube a profitable division of the company. And listen to this prediction: THEY NEVER WILL! At least not without making some drastic changes. Some of which they are already starting with their move to let content providers sell advertisements inside their videos.

So what about the second type of contagious video?

These are from the professionally produced and licensed providers such as: Hulu, 5min, and Vidshadow.

Videos in this category are:

- Highly entertaining

- Informative

- Many times broadcast quality

Advertisers have given an overwhelmingly positive response to this type of “Contagious” content. It is legal content that is highly engaging and brand friendly. This is what the online video industry should be focused upon. With Forrester projecting a 72% compounded growth rate for online video advertising through 2012, it is very important that the industry as a whole is focused on growing the business properly, which will mean an emphasis on the second type of “Contagious” Content.