An article on Digiday shows YouTube is still the preferred choice for profit making by way of video publishing. Neil Katz, editor-in-chief and svp of content for The Weather Channel, states:
“Right this afternoon, there’s only one platform that pays any money, and that’s YouTube.”
Google-owned YouTube has been setting itself apart with its new product initiatives. They launched YouTube RED earlier this year – a subscription based, ad-free streaming of selected original content from YouTube’s top creators like Pewdiepie. A lot of discussions have been raised about this concept being similar to Netflix, and questioning what exactly it will do to other subscription services. In recent events, Facebook, Twitter and Snapchat have also been zeroing in on a new generation of TV, ad and audience optimization.
YouTube is releasing 40 new TV shows featuring Hollywood artists like comedian Kevin Hart and talk-show host Ellen Degeneres. This leads to a wider range of audience for their new digital TV. It is interesting to note that most of its competitors on digital TV aren’t all video-based. Only YouTube is specializing on video. On the other hand, the success of YouTube TV all boils down to how YouTube can capitalize on these products by getting advertisers on board. Since YouTube RED is currently ad-free, the opportunity cost for these programs must be balanced out by the possible TV ads that YouTube TV can accumulate. And, with all the other platforms expanding on advertising opportunities, competition is proving to be very strong.
General Motors was one of the companies which pulled their ads from YouTube
Listening to advertisers is another way that YouTube is stepping up. The company informed the public that they will no longer be allowing ads on channels with less than 10,000 lifetime views. This move was made after big advertisers like Coca-Cola, General Motors, and Wal-Mart pulled out their YouTube spending due to their ads appearing next to videos featuring terrorists and neo-Nazis.