Google is strengthening its relationship with Hollywood and online programme-makers in an attempt to reposition YouTube for the rise of internet-connected TV.
The world's most popular video website will invest tens of millions of dollars in professionally-produced original programming as more viewers watch YouTube from their living room.
More than just Britney ... Google is to spend more on original YouTube content, according to a report
Google is also reported to be planning a "major overhaul" of YouTube this year, with the introduction of channels for topics such as arts and sports. About 20 of these channels would feature several hours of professional programming a week, according to the Wall Street Journal.
The move would represent a big shift away from the user-generated video that made YouTube the third most-popular site on the planet.
However, Google has attempted to play down the reports. "We're always updating the look and feel of YouTube. Any changes in YouTube's design would involve lots of research and would be rolled out slowly, over time to ensure the best possible user experience," a spokesman for Google said on Thursday.
Although partnerships with broadcasters such as the BBC go back to 2007, Google has hastened its experimentation with full-length TV programming in recent months.
Partnerships with online programming company Next New Networks, which is behind viral hits such as Bed Intruder and Obama Girl, and Hollywood talent agencies are aimed at keeping viewers on the site for longer, thereby increasing its value to advertisers. YouTube, which was bought for $1.6bn by Google in 2006, generated about $544m in revenue last year and is thought to have recently become profitable.
The internet giant has also signed up a number of high-profile media executives, including former Netflix boss Robert Kyncl and Universal Sports chief Claude Ruibal, to boost YouTube's movie and sports content.
Earlier this year, YouTube announced talks with the US National Basketball Association and National Hockey League – as well as "most pro sports leagues" – about broadcasting live sports coverage on its site. YouTube made the Indian Premier League its first major sports rights deal in January last year.
Although YouTube remains popular for viewing short video clips on computers, the rise of online streaming on TVs could leave the site lagging behind its longer-form competitors.
"The trend YouTube has to respond to is internet viewing on high quality screens, like connected TVs and tablet computers," said Nick Thomas, a senior media analyst at Forresters. "Users want on-demand and there's a push to higher quality online. A lot of YouTube content just doesn't work there – it needs to address this if it's going to remain relevant."
Thomas said YouTube's investment in original programming, rather than spending millions on acquiring the rights to popular TV series, is a wise move. "Licensing deals are very complex so it makes sense to spend money on creating original content," he added.
"For the global play, actually owning the content becomes even more important. There's still a concern that YouTube is like the wild west and an uncontrolled space – so investing in premium content is a bid to attract advertisers. Even if you've got a big chequebook you can't snap up all the content, but there's a lot more you can do with ad-supported programming."
Source: Guardian.co.uk
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