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Youtube: Giving up on monetizing "The Evolution of Dance"

Posted: April 2nd, 2009 | No Comments »

Clickz broke a great story about changes to youtube. Basically, youtube seems to be throwing in the towel on monetizing their brand of UGC. They’re creating a tabbed ‘ghetto’ for not only amateur videos like “Charlie Bit My Finger“, but also for semi-pro content as well (sorry semi-pro, you’re more semi than pro).

Between closing down the Google Adsense/Youtube units and now creating a monetizable player specifically for professional content, I think Youtube is taking a business plan stand. Their UGC, with billions of eyeballs, is pretty much unmonetizable. UGC (and copywrite infringements…and porn…), with its $470 million of loss for hosting and serving, may be the french fries that bring the search audience to youtube. But it’s the professional content where youtube is now betting to make its money.

Some changes I would expect?
Search results will begin to favor professional content in the results. UGC, which is next to impossible to search productively anyway, will become subordinated to the professional results. If you search for “how to bake a cake” chances are you wouldn’t mind finding a Food TV segment, or Martha Stewart or anyone you know. Of course, you actually get “lfritz73″. And as charming as she is, I have no idea if she makes a good cake. Segregating the two will allow you to find all the copywrited clips you want…all legally if Youtube can get their syndication deals done with the majors.

Copywrite infringing materials will get taken down faster, or through a better process. With revenue at stake now, both youtube and copywrite holders (NBC, ESPN) will want to have their results found on the monetizable, “good” player, not the UGC ghetto tab. Previously, there was no economic incentive to takedown infringing content (and actually incentive to leave it up for the audience those clips attracted). Which leads to….

Professional publishers will be more liberal with what they put up online. If youtube is monetizing the content, and they are counting the eyeballs, and there’s a pretty player….well, voila, that’s kind of TV.

More and more eyeballs to broadband…less and less to the TV box. Watch out Comcast. The repeats and archives are now moving online. You know what’s next.

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