Google Reinvents YouTube Again with Premium Video Channels

Google Reinvents YouTube Again with Premium Video Channels

In 2006, Google purchased Net video clip powerhouse YouTube for $1.65 billion. The search giant statements the offer was a economic success. Management says that YouTube's income rose to virtually $1 billion very last year, and it hints the web site may possibly be lucrative. But Google does not should break out YouTube like a unit in its quarterly monetary statements, and revenue inside of divisions of big companies usually depend what bills the father or mother assigns. For instance, who pays for the video storage and bandwidth costs for YouTube -- the video web site or Google?

Google's newest move to increase the web site and elevate revenues is usually to develop premium video channels on YouTube, a number of media outlets are reporting. The premium zone would contain as several as twenty sections of subject material, all streamed to TVs, PCs, and portable units. Which makes YouTube's new design sound much like these of practically every single challenger inside the premium video industry, from Netflix and Comcast to Amazon , Apple and Hulu.

Google has battled with content-creating firms prior to now. Viacom sued YouTube for copyright infringement to your tune of $1 billion. Some observers thought that the legal action would wreck YouTube, but a federal court ruled in favor of Google last 12 months.

Google has one advantage about its levels of competition within the on the web video clip race: viewers. According to Comscore, in February, Google video web sites had 141 million exclusive U.S. site visitors, and virtually all of that targeted traffic was to YouTube. These guests accounted for 1.eight billion viewing sessions. No other U.S. video clip site even came shut. So if dimension matters, Google may possibly have the ability to get a huge share of the premium video clip material delivery industry.

But dimensions may not make a difference as much as consumers' mindsets. A lot of individuals believe of YouTube as largely the on the web home of grainy, beginner clips of laughing babies, dancing dogs, and new music movies. It is a sensible perception: YouTube has for that most component been a assortment of an odd combine of residence videos because it absolutely was founded. Google may have to alter that picture if it hopes to get significant numbers of shoppers to visit YouTube seeking top quality video. And aged images die tough -- particularly on the web.

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