Google’s attempt to bring the full-length paid content to YouTube has faced many hurdles. You-Tube is the number one video site in the Internet, hence there is high potential for monetizing the paid content. But should they be changing their lanes to paid content or concentrate more on the advertisement revenue?

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David Eun, Google’s vice president of content partnership, mentioned that YouTube has only scratched the surface of advertisement. He insisted that advertising will be the main course for YouTube and that by 2010 the content partners would start seeing meaningful ad dollars.

Currently, YouTube already has some top media partners like CNN and TNT, ESPN and ABC; and UK’s Channel 4 and Channel 5.

What is Google’s interest?

It can be easily understood that Google is aggressively moving  towards Music and Video industry and is planning to have big partnership with Hollywood studios and TV companies. But the companies are still reluctant to partner with You-Tube because they do not want to lose their revenue stream from the cable TV and DVD sales. Hence, Google is providing options for companies like:

1. Online DVD rental portal like iTunes and Amazon
2. Monthly subscription to the Channels similar to cable TV
3. Premium programs for free viewing the content in Web (under advertisement model)

Further, the web space already has a tough competitor, Hulu. Hulu is the second most visited video site owned by big media NBC Universal, News Corp, and Walt Disney.

Should YouTube partner with Media Groups?

When YouTube started it was all about user’s content and the ability for people to broadcast themselves. It stood as a brand that was closely linked with the people and not any big players. The platform have already made many individuals celebrity on their own way. But the initial reaction for YouTube was as harsh as it could be :

1. Portal for submitting your complain
2. Total Junk content
3. Girl’s diary etc

But YouTube proved to be much more than that, it became one of the top social media marketing platform. The potential of YouTube encouraged many businesses to include YouTube marketing as the most necessary strategy to get customers. This has made YouTube more friendly to small business and entrepreneurs.

Hence, can partnering with bigger media create a loss to these business? Won’t the bigger Channels dominate the presence of YouTube’s eco-system? YouTube is trying to bring the TV content to internet for users to watch them. But on whose interest is this targeted at: Media Channel, Google or You?

There is no doubt that Google will work out their way to partnership as they have done with other kinds of content providers. From the perspective of Google, the step is very important because it doesn’t want to be left out in the new video advertisement and video content market. But then we have to wait and see how this will change the culture in YouTube. Businesses who are upset with Online revolution over content is not going to stay silent.

News Source:

Reuters

Image Source:

http://www.cato.org/multimedia/images/youtube.jpg

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