YouTube Modifies Content as TV Meets the Web
Google is working on some major reprogramming with YouTube, to secure its position against the proliferation of devices that allows people to watch online videos from their living rooms. They also look forward to competing with broadcast and cable television, subtly persuading viewers to stay on the website longer, in order to sway ad profits to their side. The homepage will undergo changes highlighting a set of “channels” focusing on arts and sports and about Twenty or more of these channels will showcase professional programming that’s designed exclusively for YouTube which Google is willing to spend $100 million on.
This further highlights Google’s unwillingness to pay licensing fees the same way competitors like Hulu and Netflix do. It even had to implement a filtering system because of the proliferation of professional entertainment content on the website, which has garnered the search giant complaints from the content owners themselves. They want to settle in between user-generated contents and expensive TV shows, which will give rise to a new niche whose nature we will know for sure when the overhaul is over.
The move is just in time to compete with the cache of TV content and movies that Amazon, Netflix and Hulu is currently working on. This reprogramming comes off as a diversion from how YouTube came to be, a place dominated by individual videos where clips go viral. It targeted traffic over revenue but drifted away from such setting and started focusing on profit when Google acquired it back in 2006 for $1.6 billion. Google added TV and movie programs expecting the move to cater more ads. Such content however are costly and Google is not willing to pay much for licensing. But it doesn’t mean that because Google’s not willing, then it won’t. In fact, it’s currently in talks to stream Miramax’s set of 700 films and will pay about the same amount Netflix did. The deal has not locked in yet.
Instead of paying for licenses, Google will redirect the budget into original programming, thus creating a network of ad-supported channels. It’s currently in talks with Hollywood talent agencies, such as Creative Artists Agency, William Morris Endeavor and International Creative Management for future endeavors. However, they are likely to attract directors and production companies rather than celebrities. Google is also hiring people to work on the initiative, designing the channels and such.
Aside from compelling users to stay on the site for more than 15 minutes a day, they also want to get a chunk of the $70 billion US television-ad market. YouTube currently ranks 3rd in terms of unique monthly visitors and generated about $544 million in net revenue last year after giving content creators their share of ad revenue. Income projection this year is estimated to be around $800 million which is an indication that it’s gradually becoming lucrative.
This endeavor will eventually converge with their new social-networking feature that allows users to know what video content is popular among their contacts.
In addition, Youtube recently added Stupeflix as part of their service. The Stupeflix app gives YouTube users access to three themes namely Outline, Celebrate and the newly released “Top 10.” The Stupeflix editor will then pop up and you can start making videos the way you do it at Stupeflix’s website.
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