Break.com spends/makes money on UGC

May 14th, 2009 (9:01am) Dustin Plett

All the talk of user-generated content (UGC) not being profitable obviously has not reached the management at Break.com where its creators announced they will increase their spending budget to purchase UGC by 50 per cent.

Break - which bills itself as premier online entertainment destination for guys - has a number of things going for it right now that other UGC websites don’t have. First, it has complete control over all the mostly video content on its website, users cannot upload freely to the space. This means that although Break pays for the content, all content is relatively good quality and won’t be seen anywhere else. Break shows a mix of professionally created and UGC video.

Secondly, Break has a target demographic and works hard to tailor all video purchases towards that demographic. Having a clearly defined demographic makes it easy for them to package their website and sell it to potential advertisers. Although some of the content is a little low-brow, the company has done a pretty good job of compiling content that men between the ages of 18 and 34 may be interested in.

And the third thing that Break has is audacity to go against the grain. Instead of backing away and trying to play it safe, Break has forged full steam ahead. This has rewarded them with some pretty impressive numbers: over 18 million unique viewers every month spending an average of 17 minutes on the website. To put this in perspective, websites in the same space such as Metacafe receive around 22 million unique views with the average stay lasting 12 minutes.

By bucking the trend and actually putting more money into securing UGC that appeals to a very desirable demographic, Break is making its website a place that advertisers are looking at more seriously. This may be a model that other website creators want to look at in the future who are wanting to add value to their new or already established video sharing website.