YouTube has spent the past year preparing for an assault on traditional television, and now it is ready to pounce. Heading into the spring upfront season, when media buyers commit to spending money on various TV networks, YouTube has begun openly petitioning marketing executives to ditch TV and spend their money online.
Google brought out all the stops at its BrandCast presentation for advertisers Wednesday at the Theater at Madison Square Garden. There were giant video displays and award show-caliber performances from the likes of Pharrell and Janelle Monáe, all in the name of promoting Google's YouTube platform as a place brands should advertise instead of television or rival online video sites.
YouTube has recently received a knocking in the press for its reported lack of a profit and the massive video view-volume being achieved by competitors like Facebook and Vine and others, but profit and views are only part of the story.
Google Inc.’s (GOOG) YouTube appears ready to make another big investment aimed at encouraging contributors to increase and improve their content. This comes at a time when the online video-sharing giant faces increased competition from peers such as Vimeo and Vessel, as they look to poach star contributors from YouTube by offering them more money.
Correction Appended Oct. 23, 2013 YouTube is increasing its efforts to generate more revenue with its most popular videos producers. Thousands of YouTube creators will now be able to launch paid channels, which charge a monthly subscription fee of $0.99 or more. The paid channel initiative began in May as a pilot program with a few dozen accounts, including popular brands like Sesame Street and the Professional Golf Association.
It has only been a day since Time Warner Inc (TWX) spun off its ailing publishing business, Time Inc. (TIME), but the media behemoth is not wasting time searching for a viable business that could potentially fill that void.
YouTube is increasing its efforts to generate more revenue from its most popular videos. Thousands of YouTube creators will now be able to convert their accounts to paid channels, which charge a monthly subscription fee of $0.99 or more. The paid channel initiative began in May as a pilot program with a few dozen accounts, including popular brands like Sesame Street and the Professional Golf Association. Now any video creator who has 10,000 subscribers and has been verified by YouTube will be able to charge a fee for access to their content.
YouTube invited advertisers, partners and many more to its new Los Angeles production space on Wednesday, staging an alternate version of the presentation it will deliver advertisers in New York next month.
There's a mountain of money at stake as online and offline video consumption shifts to smartphones and tablets. The pay and broadcast TV industries, music labels, Hollywood studios, big tech companies, and major advertisers all have to keep a close eye on this trend.