Is Google Looking to Decimate the Future of Television?
Google’s (NASDAQ:GOOG) YouTube is looking to attract major brand advertisers by presenting “Brandcast” and revealing premium content and new shows. YouTube has said that by the end of July there will be 25 hours of new original content on its video streaming site every day.
Today, YouTube announced that it is partnering with the U.S. Olympic Committee to create a new channel, called “Team USA,” which will premiere in time for the Olympics and be sponsored by AT&T (NYSE:T). However, the channel will not compete with NBC Universal’s (NASDAQ:CMCSA) live broadcast of sporting events, but rather YouTube will run original content about Olympians, instruction from coaches, and historical footage.
YouTube has also announced plans to venture into an original channel about women called “WIGS.” The program will star Jennifer Garner and America Ferrera, and will be made with the help of the film makers behind movies like Black Swan and Risky Business. YouTube will also launch another channel known as “The Picture Show” from Tribeca Enterprises — the company behind the Tribeca Film Festival and Maker Studios.
The company’s new venture is an attempt to access its hardest-to-reach demographic: men aged 18 to 34. YouTube asserts that the group now spends more time streaming video than watching TV, with one third visiting YouTube multiple times a day, half subscribing to a YouTube channel, and two thirds sharing videos in the past week.
YouTube’s push will certainly bring in more advertisement revenue. More importantly, YouTube’s strategy is to compete directly with TV as the company incorporates original content into its streaming services.