Ooyala, a provider of video monetization products and services, has introduced a new product called Ooyala Paywall.  Typically the word "paywall," in Internet terms, refers to a blockade between users and a portion of the content they're after, and that's exactly what this product is.  It's a smooth, integrated way for video publishers to take payment from their customers for video views.

To create Paywall, Ooyala partnered with Pal Pal.  Users will be able to use their regular credit card or their PayPal account to submit payment.

Payment for the video view is done right within the browser and, once complete, allows the video to continue playing.  The goal is to allow smaller publishers to have the same power and flexibility as iTunes or the YouTube rental store.  This is how it will look:

Ooyala Gives Video Publishers Integrated Paypal Payment System ooyala paywall features As the screenshot suggests, publishers will be able to set a section of their video to serve as a "preview."  Users will see that preview, and then will be shown the Paywall--publishers have the ability to set the length of the preview.  And it works with standard video and live-streaming video as well.  Sweet.

Already there are publishers using Paywall, such as LATV Networks and Sportfive, and the new product is baked right into Ooyala's publishing and analytics platform, Backlot.  Take a look at what Jay Fulcher, Ooyala's CEO, has to say about the new product:

This is pretty awesome, and timely.  More and more video creators are looking for ways to monetize their videos beyond simple advertising options provided by YouTube.  If Ooyala's Paywall is as flexible and easy-to-use as they say, then I can see it catching fire with publishers.  Though it remains to be seen exactly how ready viewing audiences are for this kind of thing.

  • http://www.facebook.com/profile.php?id=1129232282 Jo Haywood

    I have some clients making specialist training videos who would like to offer their resource by subscription. But it would need a good introductory price whilst they try out this new revenue stream.

  • JeffBach

    Ooyala seems like a good company and no doubt they are going where they think there is money. I wish them well. But, there product/service is at a price point that is still out of reach of about 98% of the marketplace. The old Long Tail analogy comes to mind here. 3 or 4 data points at the head of the curve are gigantic and the remaining 99,996 data points cumulatively make up the rest. To me, Ooyala's latest product is a step in a great direction, but it is out of reach of the Long Tail of producers. A company like Mindbites, to me, has a much more affordable product that does nearly the same thing as far as I can tell.

    500.00/month vs. 14.00/month.

    Glad Ooyala is going to town and likely fits the bill for the Fortune 500, but I need something affordable that I can use to monetize my video library. I think Mindbites is looking like that company.

  • JeffBach

    Ooyala continues to look good in some ways and not so good in some ways. After stumbling around some more today and using Google's spiff auto-complete feature to try and find better keywords for video-related topics, I found Mindbites. http://www.mindbites.com/sell. Have been back to their site 3x now, trying to find the flaw in their model. Each time leaving a bit more hopeful that what they offer could do the trick for what I need.

    Why don't you big brains at ReelSEO interview this company so we can all learn from your probing and in-depth analysis :)

    Seriously - you should, I think the company looks very interesting. Like Ooyala's product it solves my monetization problems but at a price I can afford.

    • http://www.reelseo.com/author/grantastic/ Grant Crowell

      JeffBach, I doubt I'd qualify as a "big brain" (more like a loudmouth), but I was able to finish an interview with Ooyala's Senior Product Manager to go more into the program and have a demo. If time permits with our Streaming Media Conference coming up, I'll see if we can post that interview next week for you guys.

      One thing to mention: Ooyala has informed me that they expect the Paywall program to be available for entry-level packages (the $500/month) around 1Q2011, after they say they'll have worked the kinks out. (Right now it's a beta program.)

  • ass

    bad idea

  • JeffBach

    Just got off the phone with an Ooyala rep. To my ear, it sounds like they are early in their rollout. The paywall is available only to the highest tier of enterprise customer. btw, the level of pricing is not even displayed. I suggested that this is a game changing service that make a specialty video production business model actually work. I further suggested that 98% of Ooyala's potential customers will never be able to afford even the 500/month fee. But we can all afford a revenue split. Paypal by the way takes 20% off the top. Ooyala would then split the remaining 80% between themselves and the content owner. Fingers crossed for the mid-term future. I'm still on the sidelines.

  • JeffBach

    ouch. 500/month. There are aren't going to be too many specialty producers that can afford that. Would love to see a revenue split. The more video is sold, the more they make, the more I make.

    • Jeremy Scott

      That's a really great idea, actually. Hopefully they'll roll some more creative pricing structures.

  • JeffBach

    This has some very interesting potential and could not have come along at a better time, given how sick and tired I am of not being able to monetize my video library. Hope it works as described.

  • Tim

    Counterstrike to sparkeo.com?