Google Embraces Traditional Business Model for Rich Media

May 21, 2012

Online Media Daily recently reported on YouTube’s desire to attract more content deals with large media companies in the article “Report: YouTube Mulls Content Subscription Service.”

According to the article, the Google company currently has a global audience of over 800 million unique users. While YouTube has no plans to begin charging for its current content offerings, it might add premium offerings that are not already on the video-sharing site. Since it already does movie rentals and sports subscriptions, this would not be all that different.

The article states:

“In adding a new subscription service, the idea is to entice owners of high-demand programming in categories such as live sports, music and entertainment to put their content on YouTube. Much of this content is owned by big media companies, which receive the bulk of their revenues from TV advertising and subscription TV carriage fees. Many of these companies have been unwilling to put their content on YouTube, because of its predominantly advertising-only business model.”

This may not be a new idea, but it will certainly cause some changes in the way YouTube does business and may impact the way that others see the company. Will this solve the big hat, no cattle problem of YouTube?

Jasmine Ashton, May 21, 2012

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.