Hulu’s super fast rise to 2nd place in the online video market has forced the Google owned Youtube into coming up with actual strategies to make some money. Funny, I’d have thought it would be common sense that brought this on…
So, a few numbers:
100 Million – Estimated times Susan Boyle’s Britain’s Got Talent video has been watched.
0 – the amount of dollars made from those impressions.
I think those numbers are enough for now…
Google has stepped up actions to try and make some serious money from the worlds number one video site by ‘setting up partnerships with big media companies that would help it generate more advertising dollars from the millions of videos hosted on YouTube.’
Partnerships with Sony Pictures, CBS, Lions Gate and others are set to provide movie trailers, TV shows and music video content to the site in a bid to make it more attractive for advertisers. As it stands marketers are reluctant to advertise due to the unpredictable and often inappropriate content uploaded by Youtube’s users.
As it stands, ads only show up on between 3% – 9% of the sites’ videos. – eMarketer
To catch up with Hulu, Youtube’s gong to need to supply users with a lot of partner content that they’ll actually want to watch. Is this going to have the same repercussions for overseas users as it Hulu does? And if so, how do we get around this?
Surely Youtube’s customer base stretches far and above the USA, yet how to US only partnerships benefit this international userbase?
I have a lot of questions about this, and as we see, so do Google who’re doing anything they can to get out of their massive $471 Million deficit every year.
This handy Businessweek article (which prompted me to write) has some of the answers but also provokes a lot of other questions about the model which has yet to be tried and tested.
Discuss in the ocmments: Do you have any ideas about how Youtube might make some cash without alienating users?