When Google bought YouTube in 2006, it left a lot of people scratching their heads.
This head-scratching led to more frustration as Google starting laying down more restrictions and pulling full videos and channels if users violated the Terms of Agreement by posting copywritten material.
Finally, more ads started appearing — not only around the site, but before popular videos as well.
Despite these slightly annoying changes to the site, YouTube continues to be successful.
The Wall Street Journal reported YouTube is now the world’s No. 3 website in terms of unique monthly visitors and generated about $544 million in net revenue last year.
Considering Google purchased YouTube for $1.6 billion, YouTube executives have said the site is close to being profitable.
Add the fact that the site is expected to generate more than $800 million in net revenue this year, according to The Wall Street Journal, and I’d say Google made a good choice in purchasing the popular video site.
But Google isn’t stopping there — it plans to ride this wave into even more profits by innovating and expanding YouTube yet again.
Google plans on spending around $100 million to create original programming to fill 20 new YouTube channels, sources close to Google told The Wall Street Journal last week.
This original, low-cost programming will be specifically for the Web and YouTube, and support for the shows would come through advertisements.
Sources told The Wall Street Journal this will be a “major overhaul” to YouTube.
Google has reportedly already begun speaking with top Hollywood talent agencies in search of ideas for these new original shows.
Google once again is showing its plans to merge home television with the Internet. The company did it last year by releasing Google TV, and now with this new programming, the wall between TV and the Internet is one step closer to being torn down.
This could not be a better move for Google.
As a busy college student, I barely have enough time to sit on my couch and watch a 30-minute television show when it comes on — thank God for DVR.
But I don’t know how many times I (and many others around campus) have pulled out a computer or phone and mindlessly browsed YouTube.
Considering the site has made stars out of no-name (and no-talent) people such as Rebecca Black and Justin Bieber, there’s no telling what fame and fortune may come to the actors involved in Google’s new programming.
While this idea may seem new and revolutionary, it actually comes weeks after Netflix announced its plans to create and distribute new, original programming to stream on its “Watch Instantly” service.
While the battle for online television show streaming has been between Netflix and Hulu for the past couple of years, it’s interesting to see how much Google will invest in YouTube to compete with the other two giants.
YouTube does offer some full-length movies and television shows such as “The Da Vinci Code” and “Married … With Children,” but the selection is limited.
I’m not saying it will happen, but if anyone were to take down Netflix and its successful “Watch Instantly” streaming service, I believe it could be done by Google via YouTube.
With so many established users — and more than a million unique visitors to the site in the U.S. in February — and the right programming, YouTube could easily start pulling people away from Netflix.
But after that, the debate comes down to choosing between an ad-based service like YouTube or a monthly subscription-based service like Netflix.
At this point in time, Google has so much money, power and influence it could do whatever it wants — let’s just hope it continues doing things positively for its users.
Adam Arinder is a 21-year-old communication studies senior from Baton Rouge. Follow him on Twitter @TDR_aarinder.
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Contact Adam Arinder at [email protected]
Press X to Not Die: Google to bring original programming to fill 20 YouTube channels
April 12, 2011