noviembre 16, 2011, Mielina Digital
One of the most impressive success stories in the Internet is the You Tube case, officially launched on November 2005; in a few months it become the favorite place for uploading and watching videos, by the middle of 2010, according to ComScore, it had 43% of online videos market share. You Tube ranks 3th behind Google and Facebook according Alexa’s list of most viewed sites.
Comcast, one of the biggest cable operators in USA, has 22.3 million subscribers; You Tube has 800 million unique viewers worldwide, this gives us an idea of the audience reach that you tube has. In addition, Cable operators cannot sell ads in all his programming, since is a right reserved to the networks, but that is something that You Tube can do, this gives it an edge that no cable provider can even dream of.
You Tube’s next media strategy is to offer more quality content and enter into the market of channel programming, becoming a generator and seller of high quality content. The channel strategy is to expand the site’s content with young talent and established brands for specific categories: sports, music, film, magazines etc. those brands s will operate a channel; this will allow them to create and distribute content that is that is too niche for a cable operator but that may have an audience online. Currently there are some brands who have agreed to operate a channel: The Wall Street Journal, WWE wrestling, Hearst Magazines, The Onion, Slate, Ben Silverman’s Electus and Disney.
In exchange of the grant, the brands will provide content and exclusive rights for up to 18 months to you tube, the revenue of the ads will be split between the two parties, with the majority to the content provider.
In order to support young talent Google purchased Next New Networks, an online video production studio and the beginning of Creators Institute, an investment and training apparatus for video producers; in addition, You Tube Next up, a grant program on which filmmakers can compete for 35,000 dlls.
But the new business strategy is not only about selling ads, in may they launched a rental movie service with more than 3000 studio movies online, entering the market of Amazon and iTunes.
