My two-year old never says he watches TV. “I’m watching Netflix,” he says, or “YouTube.” Those are his two networks (mom and dad also watch “Hulu”), which he can play on our TV set, laptop or iPad.
So it’s no wonder that YouTube working on a “major overhaul” to push more aggressively onto TV screens, competing head-to-head with broadcast and cable television for ad dollars. Reports the WSJ:
The site is planning a series of changes to its home page to highlight sets of “channels” around topics such as arts and sports. About 20 or so of those channels will feature several hours of professionally produced original programming a week, some of these people said. Additional channels would be assembled from content already on the site.
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As everyone in the TV business knows, YouTube is a great search-and-find experience, but it still lacks the depth of content for a traditional lean-back experience that TV provides. WSJ reports that YouTube is prepared to spend up to $100 million on lower-cost content acquisition.
With Google TV’s rough start, YouTube’s new effort makes even more sense. In the video space, content matters, especially as ad dollars skyrocket. Citigroup estimates YouTube’s revenue will be $800 million this year, and Hulu said this week it’s on track to make $500 million this year. Online video advertising will only continue to grow, especially as more online video is viewed on TV sets.
YouTube, Netflix and Hulu — call them the “new networks” — will usher in a new era of social TV. The Journal says that YouTube’s channels will debut with new social features that will let users see what video is popular among their friends, among other things. Netflix is also working on “extensive” Facebook integration, and Hulu CEO Jason Kilar recently called social TV a “game changer.”
YouTube’s new features will start rolling out before the end of the year.