Since launching nearly a decade ago, YouTube has gone through a series of modifications. One change that is being considered is to potentially partner with Hollywood and independent producers and fund premium content to be featured front and center on the video-sharing website, according to an exclusive report by Reuters.
Sources close to the situation say that the initiative, which has been ongoing for about three years, would prompt YouTube to spend millions of dollars to help it convert from a platform for home video to polished content. Executives believe this move would allow YouTube to garner lucrative contracts from high-priced advertisers.
Although YouTube is the most popular video-streaming website in the world with one billion unique visitors a month – higher than Amazon and Netflix – it still wants to entice companies to take part in its premium video advertising efforts.
Here are two scenarios that YouTube is currently considering: offering between $1 and $3 million as well as marketing funds to produce a series of programming and/or videos fewer than 30 minutes but higher than the average four to five minutes that are as high-quality as those found on Amazon and other online websites.
The two unnamed individuals say YouTube executives have been shopping around Hollywood and speaking with various professionals to determine what visions they may have for premium content and producing must-see videos.
Citing the two anonymous sources, the talks are in their infancy period and may never actually come to fruition. A YouTube spokesperson told Reuters in an email: “We are always exploring various content and marketing ideas to support and accelerate our creators.”
In 2011, YouTube allocated $100 million to approximately 100 channels as it provided production facilities for content creators, funds for interesting ideas and tips on how to initiate the best content possible. It also offered marketing support, such as television ads and billboards, for its channels. Some of these beneficiaries included ESPN, Reuters, Madonna, beauty blogger Michelle Phan and baker Rosanna Pansino.
In that same year, 100 original channels were launched and another 60 were added a year later. By November 2012, YouTube reduced 60 percent of those channels.
Despite the fact that YouTube generates billions of views a year, the content, according to marketing experts, is not professional since they consist of video blogging, or vlogging, shaky footage and other low-quality content. If YouTube wishes to generate immense advertising revenues then it may need to transition into the world of first-rate, quality videos.
Netflix has made headlines for its hit shows, such as “House of Cards” and “Orange is the New Black,” while Yahoo is being lauded for launching the sixth season of the cancelled NBC show “Community.” Amazon just gave six new shows the greenlight.
According to an infographic produced by YouTubeDownloader (YTD) entitled “What Happens in a YouTube Minute,” YouTube brings in $10,654 per minute and YouTube revenues hit $5.6 billion last year. Meanwhile, the top three channels are PewDiePie (3.7 billion views/$7 million), BlueXephos (2.4 billion views/$6.7 million) and Smosh (3.1 billion views/$5.7 million).
