In a bold experiment that began eight months ago, Google invested $150 million to fund new video channels to “upgrade its content from simple user-generated videos and to lure more viewers and advertising,” reports the Wall Street Journal.
Following its success, the Internet giant has upped the ante, investing another $200 million in the project, which will help marketing efforts and expansion into Europe.
Already, YouTube launched almost 100 new channels this year and has reportedly secured commitments for ads amounting to over $150 million.
“In contrast with TV, YouTube’s fast production process and the lower costs of online video means producers can make near-instant changes to their programs in response to viewer feedback,” the article states. “As a result, YouTube channel producers say the rapid evolution of their content will eventually allow them to find the best way to attract large audiences for the long term.”
According to YouTube, user growth continues to rise, with four billion hours of video viewed on the site each month (up from three billion at the start of this year). The company claims that the number of channel subscribers has doubled since last year.
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