Tuesday, November 01, 2011

Hollywood Reporter: YouTube Channels No Threat?

I'll make a confession. I was actually in the middle of reading the Hollywood Reporter's "holier-than-thou" proclamation that YouTube poses no threat to the entertainment industry, when I got distracted by a video box on the side and instead stopped to watch Antoine Dodson sing "Chimney Intruder." I laughed so hard I watched it twice. And that, my friends, is why YouTube IS a threat to traditional entertainment companies.

On Friday, YouTube announced their plans to launch 100 channels with original programming. The idea is largely celebrity driven with content expected from stars such as Jay-Z and Madonna. It's true, online advertising makes up a $2 billion industry and though robust is still dwarfed by television sales. However, what the Hollywood Reporter fails to recognize is that online content will someday soon merge to simply be considered "content" as television sets become more and more absolete and people increasingly watch programming on mobile devices. The digital divide is nearing an end.

The Hollywood Reporter is, no doubt, part of the old guard of media elite. The short sightedness across the entire industry, however, is frightening. As Sun Tzu the great war strategist once wrote: "If ignorant both of your enemy and yourself, you are certain to be in peril." YouTube (and parent company Google) are hungry. They control the majority of online ad revenue. It is only a matter of time before they dictate content as well.

http://www.hollywoodreporter.com/news/youtube-channels-no-immediate-threat-255841

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