There have been a couple of very interesting events in the last few days in regards to Tube sites. Gallery Traffic Services started selling ad spots for Xtube a “tube” site that often posts full 20-30 minute and longer videos. These types of sites have caused a lot of controversy and I still believe they are a business model that is born to fail. That sais as soon as GTS announced they were selling ad spots on these sites there was a pretty big backlash with several people announcing they would no longer buy submit passes or gallery spots from GTS and would instead deal directly with the site owners. If these people really hold true to their word it could prove to be a real statement of how unhappy people are with tube sites.

Another interesting tube related item is that that news has gone out that redtube is for sale. It was rumored to be offered for sale last year at a price in the area of 1 million dollars and they got no takers. I would be interested to see what they want for it now.

I have always said that the tube sites will begin having a real problem making money and that trouble will lead to them needing to dramatically change their business model or cause them to go out of business. I think these new developments are some evidence that I might be correct about this. More on these topics as I find them out.