YouTube to invest $100M in 'channels' with original programming: report

The Wall Street Journal has reported that YouTube will open a series of "channels" with originaly programming, spending about $100 million in the process. YouTube, a subsidiary of Google, has continued to struggle in monetizing its service since Google acquired it in 2006.

According to the WSJ, YouTube will modify its homepage, and spotlight channels based on different topics. Reportedly, about 20 of those channels will feature "several hours of professionally produced original programming a week," some of these people said. Additional channels would be use content already on the site.

Most of YouTube's content comes from amateurs, and far more than "several hours" (x 20). That figure would amount to say, about 150 - 200 hours of original programming a week.

The idea, the anonymous sources told the WSJ, is for YouTube to tap into the Internet-powered TVs that are coming out, as well as other devices such as the iPad, Motorola Xoom and other tablets, and computers and smartphones, as well.

Google has been, so far, unwilling to pay licensing fees for original programming "on the same scale as Netflix and others," the report said. Thus, it is seeking a middle ground, by investing in its own programming instead of spending large sums of money to license content.

The sources added that the changes are expected to be phased in over time, beginning before the end of 2011. YouTube is currently in the midst of hiring people to help with these initiatives, the sources added.

Here we go again, with content providers wanting end users to use more bandwidth. Meanwhile, ISPs want us to use less, and continue to issue caps on usage, which means that some (such as Netflix) have to manage quality to ensure users don't go over their data tiers.

Via: WSJ