Starting last year, YouTube produced 100 original channels with professional programming including channels for ABC News, Taylor Swift, and the Obama for America campaign. Now YouTube is increasing its effort in this space by adding 50 more original channels and expanding to France, Germany, and Britain.
But why would YouTube feel the need to move away from it's core market - wedding dances and funny cat videos? The thought behind the strategy is that by helping produce high-quality video (sorry, that cat video taken on your iPhone doesn't count), it will draw more television viewers and more importantly, advertisers.
YouTube (and therefore Google) are entering a tough market though. It doesn't seem like YouTube is going to replace television anytime soon, and it is a crowded space already with Hulu, Netflix, and Amazon all looking to get in on the online video action. And even though digital marketing is a rapidly growing market, spend on digital video ads will be $2.9 billion this year, a small percentage compared to the $64.5 billion to be spent on television advertising.
It will remain to be seen whether Google's $200 million investment in the new YouTube channels will pay off. For more info, check out the full article: YouTube to Serve Niche Tastes by Adding Channels
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