YouTube’s Strategy in Question
Posted in IPTV, News on February 12th, 2007. By Eduard F. Vinyamata.
Michael Arrington explains in this TechCrunch post what we believe to be a great summary of the most current situation of Television Networks in front of the Internet Challenge. Basically, today, television networks want their contents to be on the Internet, especially on YouTube, as this has proven to increase ratings. The problem is that they also want to be able to get online revenue out of their Internet viewers. YouTube thinks alike: they want television network contents to be in YouTube, actually much of their core contents contain copyrighted materials, and they are also trying to figure out a model to get revenue out of their video contents.
As Arrington points out, the problem is the amount of revenue that can be realistically be expected out of Internet video contents, at least with current advertising strategies such as pre-roll ads. No matter how much networks may benefit from having their contents on YouTube, they are not getting even close to what they are used to get in commercial advertising per viewer on TV. The fact that YouTube could filter copyrighted materials out of their system and they don’t is also part of the problem.
Meanwhile, Yahoo is changing it’s video strategy, moving away from user generated content (where YouTube is king) to showcase professional or semi-professional, programmed, “premium” content.
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