Monday 19 November 2012

YouTube's online TV. 100 Stations reduced to 30 after one year. They are getting ready and will be the new global TV broadcaster. Have no doubt.


In order for YouTube to enter the broader world of broadcasting, it needed to encourage content suppliers and did so through its 100 "premium channels" concept. The intention was to encourage speciality programming which might compete with terrestrial television. 100 channels got 1 million usd each. "SourceFed" looks like the winner.

A year later in the 100 million usd experiment, it's about to pull the plug on 70% of the channels and withdraw funding from them. 

What YouTube have done is to look at the viewership levels, look at the cost, and then determine which channels give the best return. So out of a 100 channels, they reckon a year in, that 30 are doing the job effectively and 70 just haven't made it.

Some of them were of course, just crazy. Like the channel dedicated to Al Gore....but if they end up with 30 channels that are viable in terms of audience and cost, that's a result.

And a review like this makes sense further enhancing YouTube's reputation as being serious in the broadcaster space.

Some of the channel are getting 3-6 million viewers a week which no standard broadcaster can compete with. Online will bring in that level of audience so that even speciality programming can attract in huge numbers.

And are the traditional Irish broadcasters experimenting with YouTube? No. Are they experimenting online? No. They think that simply by rebroadcasting their daily content through an online player, is a strategy. It has become as ludicrous as that.

I've said it before, I'll say it again - TV broadcasters are getting stuffed online and as more and more devices that facilitate online TV come into the market, the more stuffed they're going to get. And they've not a clue. Not an idea as to what is going on.

Notably, as we move into a new era of connected devices, the manner in which we consume TV will change 100%. Not only the manner in that the devices will change (which frankly is insignificant although the traditional broadcasters seem focused on it) but rather the style in which we consume it.

The online audience will look for better, niche content which broad market broadcasters will not be able to supply. They don't have the expertise for Social media, the platform, the financial resources (more ads means broad content) nor the skills (just look at their Facebook pages alone. Shocking) and in particular, they lack the understanding. Mostly, they've been propped up by Government for too long so as no longer to have a real commercial bone in their body.

So with competitors like YouTube, who have all of those skills but just need to develop the content, which they are, it's a great opportunity for YouTube to simply own the space. Own the platform.

They're not there yet....but they are getting there.

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