It's no secret that people prefer high quality video to user-generated online video. The problem is that companies, to this point, are having problems delivering it.
Added to the mix now is Googles' dumb move to shut down their video service with existing customers not really getting anything back in return (The $2 dollar certificate is more of an insult than a redemption).
Part of the Google email announcing it said:
"As a valued Google user, we’re contacting you with some important information about the videos you’ve purchased or rented from Google Video. In an effort to improve all Google services, we will no longer offer the ability to buy or rent videos for download from Google Video, ending the DTO/DTR (download-to-own/rent) program. This change will be effective August 15, 2007."
This won't do a lot to increase the confidence people have in the overall Web video sales and rental business.
With most people thinking online video downloads are of low quality, professional content creators and owners are missing out on a huge opportunity to gain market share and make a huge statement to users.
What this is doing is prolonging the inevitable; but it's too bad consumers are the ones that will lose out.
The demand by consumers won't assuage as companies go through the growing pains, but it is a lost opportunity for someone to step into the breach and get a big step on the competition.
With Google (GOOG) it's too bad they've now become part of the problem as people are going to start to wonder if their online investment in video will be available tomorrow. It's a legitimate concern.
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