In the wake of the $100 million Google invested in original YouTube content last year, the company is putting up $200 million to add another 50 channels. The money will be used to expand channels to France, Germany and Britain, cover marketing costs, invest in production equipment and even pay full production costs in some instances.
The channels are created by both smaller, online-only producers and major media producers like ESPN and Everyday Health.
“Other online video platforms — including Amazon.com, Netflix and Hulu — are also trying to compete for viewers by creating original content,” reports The New York Times. “But transforming from platform to producer has been challenging for all, including Google. And it is hard to argue that YouTube, or any other video platform, is on a path to soon replace television — whether for viewers, content makers or advertisers.”
Since the introduction of original content, YouTube has reported an increase in the hours viewers spend on the site, rising from three billion a month to four billion. Even so, content creator and advertisers aren’t yet betting heavily on online distribution.
“Though advertisers will increase their spending on digital video ads 46.5 percent to $2.9 billion this year, that is a small fraction of the $64.5 billion they will spend on television, according to eMarketer,” notes the article.
YouTube has focused on younger generations that have grown up online, acknowledging that older generations are less likely to switch over from TV.
The Google-sponsored original channels allow new content to get financial support as well as “bypass television’s frustratingly slow production schedule,” the article states. “Another contrast with traditional television is that it is much easier for video creators to get a start and gain a following.”
The article concludes with a positive outlook for the growth of online content: “There’s a giant pot of money that is controlled by the broadcast and cable television industries, and it’s because there’s comfort and scale and predictability,” said David Grant, president of PopSugar Studios and a former president of Fox TV Studios. “There’s a fair amount of ways to go — years — before the online video industry has enough scale to move those dollars over. But it is inevitable.”
Karla RobinsonOctober 8, 2012 at 11:22am
The article concludes with a positive outlook for the growth of online content: “There’s a giant pot of money that is controlled by the broadcast and cable television industries, and it’s because there’s comfort and scale and predictability,” said David Grant, president of PopSugar Studios and a former president of Fox TV Studios. “There’s a fair amount of ways to go — years — before the online video industry has enough scale to move those dollars over. But it is inevitable.”
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The article concludes with a positive outlook for the growth of online content: “There’s a giant pot of money that is controlled by the broadcast and cable television industries, and it’s because there’s comfort and scale and predictability,” said David Grant, president of PopSugar Studios and a former president of Fox TV Studios. “There’s a fair amount of ways to go — years — before the online video industry has enough scale to move those dollars over. But it is inevitable.”
The article concludes with a positive outlook for the growth of online content: “There’s a giant pot of money that is controlled by the broadcast and cable television industries, and it’s because there’s comfort and scale and predictability,” said David Grant, president of PopSugar Studios and a former president of Fox TV Studios. “There’s a fair amount of ways to go — years — before the online video industry has enough scale to move those dollars over. But it is inevitable.”
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