The other way Howcast makes money is from so-called “branded entertainment.” These are how-to videos for hire: advertorials, product demos, customer support videos, social branding. Companies such as AT&T, Kodak, JetBlue, Twitter, and Boxee pay Howcast a fee to create these videos and then pay on top of that for each view. Some examples of these sponsored videos include “How To Get Started With Boxee” (embedded below), “How To Use Twitter,” and “How To Use Your Cell Phone as A Wingman” (AT&T). These aren’t ads per se, they are more instructional videos on how to use a product or attempts at social branding.
Not only does Howcast produce the videos, it also distributes them through its site, and various other channels. Branded entertainment pays well. Although it account for only about 10 percent of the videos Howcast produces each month, it currently makes up a majority of Howcast’s revenues.
Howcast produces all of its own videos through a network of freelance filmmakers. It provides them with the scripts, voiceovers, and graphics to streamline production. Using this method, Howcat is able to crank out about 1,000 how-to videos a month. It typically pays filmmakers about $50 for a 2 or 3 minute video.