According to a Wall Street Journal report, Google is aiming to step into the cable industry as it is investing $100 million, which would be to develop original content for a number of new YouTube channels. The planning from the search engine giant’s video site, noted by the report, is that they would come up with the new channels in the next year.
Google is almost into signing up agreements with or is nearing deals with skateboarder Tony Hawk and media companies Warner Bros. and News Corp’s ShineReveille, the company that produces “The Office” and “Ugly Betty.” Other expected partners include FremantleMedia, BermanBraun, IAC’s Electus, Everyday Health, Iconic Entertainment, Anthony Zuiker, and DECA. The expected partner list of YouTube includes RTL Group’s FremantleMedia Ltd., which produces “The X Factor”; BermanBraun, which has produced shows for SyFy and other cable channels.
It is even being said that content would be even produced for YouTube related to sports as Verso Entertainment, formed by National Basketball Association player Baron Davis and Cash Warren are even in talks with as reported.
Its been reported that Google would recoup the advances by selling advertising to run with the content. It would eventually end up sharing this portion of their advertising revenue with the content partners.
Updating the news from a YouTube representative, he clarified that the company prefers not to comment on rumor or speculation. But it was at the same time noted him saying, “but we’re always talking to content creators and curators of all kinds about building audiences on YouTube. The more engaging, high quality content they bring to the site, the more content there is for YouTube users to enjoy.”
As Google is adding a new line of service, its competition for the same would even be on the rise. The competitors here would be a few who have been known by Google for long. The list here includes Dish Network and many others. Recently Dish Network and Amazon even announced that they were getting collaborated to jump into streaming content. The main purpose for the same would be to challenge Netflix, which has been on the backfoot since there was a price hike from the company’s end in its DVD-and-streaming plan.
Amazon, with the launch of its Kindle Fire tablet, announced that the new tablet would be bundled with a free one-month subscription to Amazon Prime. This would give Kindle Fire tablet users an opportunity to access more than 11,000 movies and TV shows for $79 a year.
Dish even had another update last week, as it unveiled the ” Blockbuster Movie Pass,” a bundle of services that would be up for the offering which includes streaming video and discs and games by mail to existing customers for $10 a month.
Google has never hesitated to enter a new line of services or products, which it has had fate in. This has been proved yet again. YouTube has been one profitable segment Google has been enjoying since it was acquired. For the ad section, YouTube currently gets lower ad rates than Hulu LLC and this might be yet another attempt to improve its advertising revenue.