YouTube to spend $100 million on niche channels
Starting this month, Google's YouTube plans to launch around 100 new exclusive content channels over the next year. These channels are being created by mainstream celebrities and production companies, and also some of the top YouTube stars.
Google is giving them cash advances (upwards of $100 million total) to create some professional quality content. This is a huge step up from the beginnings of Youtube, where there wasn't much more than vlogs and silly pet videos.
It is the most popular video site in the world and has made stars out of many people who would otherwise have not had a chance. And now, for their next big step, they are now reaching out to actors, musicians, writers, athletes and more to create channels that will guarantee views. After all, their most viewed channel is the music video channel VEVO.
The relaunch of Google tv was also announced recently. We can expect Google to bring this new Youtube content from the computer to the tv, where you can be lazy on the couch and watch without having to click on a new video every 2 minutes. TV is definitely shifting to online content, and Google wants to be part of it.
The new business model supports the new format, and there is a sh*tload of money to be made. After the money from the cash advances is made back, content creators can make up to 55 percent of ad revenue. And there is $60 billion to be made in the tv advertising market as opposed to $2 billion in video advertising.
Is this goodbye to YouTube as we know it? Nah. There will always be plenty of us on there trying to be somebody someday.
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