Business Challenges: Mogulus adds ads

Mogulus is one of the coolest websites in the area of live broadcasting. It allows you to create your own channel, customize to the smallest detail and start broadcasting live from your computer in minutes. More importantly, the look and feel of the channel is really professional, setting it apart from other similar websites.

It's been almost a year since I saw their demo at the NY Tech Meetup and I still remember the enthusiastic response from the (usually tough) audience. Fast forward one year and hitwise now reports that the website has reached a plateau. Moreover, starting tomorrow, Mogulus will begin inserting overlay adverts in all their channels. So lots of change and interesting times for this startup.

In the midst of all this, here is the email that they sent out to their users:

We have big news: starting Thursday 29th May 2008 at 3pm EST, we will begin inserting overlay adverts in all Mogulus Free channels.

I am not sure how I felt reading this email. Usually, when you hear someone announcing Big News, you expect to see a benefit or a service upgrade, i.e. Big News = Good News, not the case here.

To their credit, they also announced that they will release a Revenue Sharing program later this year, after they launch their "Pro" (ad free) version, later in the Summer. Also, for the time being users can choose to turn off the ads if they wish.

So altogether, exciting times for the Mogulus team. I am still very curious to see how much they will charge for the Pro version...