Mon, May 28, 2012, 8:53 PM EDT - U.S. Markets closed for Memorial Day

YouTube enlists big-name help to redefine channels

Online video channel rips page from App Store playbook in seeding a range of new content

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CULVER CITY, Calif. (AP) -- YouTube is enlisting Hollywood's help to reach a generation of viewers more familiar with smartphones than TV remotes.

The online video giant is aiming to create 25 hours of programming per day with the help of some of the top names in traditional TV. The Google-owned site is spreading its wealth among producers, directors, and other filmmakers, using a $100 million pot of seed money it committed last fall. The fund represents YouTube's largest spending on original content so far.

YouTube believes it is laying groundwork for the future. While the number of traditional TV watchers has leveled off in recent years, more and more people are watching video on mobile phones, tablets and computers, especially the 18- to 34-year-old age demographic that advertisers covet.

The idea is to create 96 additional YouTube channels, which are essentially artists' home pages, where viewers can see existing video clips and click "subscribe" to be notified when new content goes up.

Well-funded videos by a select roster of stars are likely to be more watchable than the average YouTube fare of cute cats and webcam monologues. YouTube is betting that a solid stream of good content will attract more revenue from advertisers, bring viewers back frequently and bolster its parent company's fledgling Web-connected-TV platform, Google TV.

The cash has enticed some of TV's biggest stars, including "Fast Five" director Justin Lin, who directs episodes of "Community," ''CSI" creator Anthony Zuiker and Nancy Tellem, the former president of CBS entertainment.

Zuiker is teaming up on a horror series for YouTube after observing his own family's behavior. His three pre-teen sons spend more time on phones, iPads and computers than watching TV these days.

"We want to jointly take the risk with YouTube and roll the dice on the future," Zuiker says. "The old regime is going to falter because everybody thinks the TV is the only device that really counts, and that's just not the case."

For producers, it's a chance to create shows that are completely free of meddling from major studios. They can also stay relevant with a younger crowd whose viewing is moving increasingly online.

Several new channels such as the extreme sports-focused Network A and Spanish-language Tutele have launched already. YouTube hopes to have them all up and running by this summer.

"This was really about galvanizing the ecosystem at large," says Alex Carloss, global head of original programming for YouTube. "We see the portfolio (of funded channels) really representing the best of TV meeting the best of the Web."

YouTube isn't the only Web video service that has started to pay for original content. Netflix Inc. recently launched the original series "Lilyhammer," while Hulu premiered "Battleground." But YouTube videos tend to be under 10 minutes, instead of fitting into traditional half-hour or hour-long TV slots. And aside from a few guidelines, ultimate control is given over to the artist, including what is uploaded and when new episodes appear.

YouTubers also get away with far edgier stuff than the middle finger that rapper M.I.A. flashed during the Super Bowl halftime show.

Although YouTube's entire investment is less than half of what some studios spend on one blockbuster movie, about a third of the new channels were awarded to scrappy YouTube veterans who already know how to make it big online while keeping production costs low.

YouTube expects to recoup what it spends on the grants by sharing ad revenue the new videos generate.

At Maker Studios, which received money for three new channels, the funds have turbo-charged an already teeming operation that has about 160 full-time staff spread across several buildings crammed with props and computers in the west Los Angeles suburb of Culver City.

On a recent visit, two scenes were being shot in an alley. One was for a parody of a Christmas movie trailer. The other was for a new series about a crime-fighting van called "Si, Es I, Pepe."

Maker cranks out about 300 YouTube videos each month at a bare-bones cost of about $1,000 each.

The studio's videos generate a whopping 500 million views each month, thanks largely to established hits that include Ray William Johnson's roundup of crazy videos and such viral giants as "Epic Rap Battles of History."

Advertisers pay up to $10 per thousand views for video ads that precede the featured content, according to TubeMogul, a major buyer of YouTube ads for the nation's biggest advertisers including Proctor & Gamble Co. and News Corp.'s 20th Century Fox movie studio.

Established YouTube partners share roughly half of their revenue with the site. So if Maker videos generate $1 or $2 in ad revenue per thousand views, it would just be scraping by.

Maker co-founder Danny Zappin, who quit film school to buy a high-end camera to start a career on YouTube, says it's a "tricky balance" to keep the studio's share of ad revenue higher than the cost of video-making. The undisclosed amount it got from YouTube, on top of the $4 million venture capital it received about a year ago, lets Maker put up more videos without waiting for the views and cash to roll in.

"It gives us resources and runway that we wouldn't otherwise have," Zappin said.

For other less-established players in online video, the money has given them an added reason to get involved.

Former CBS executive Tellem teamed up with TV entrepreneur Brian Bedol to create Bedrocket Media Ventures, an upstart production company behind several new YouTube channels, including Network A. The funding "allowed us, or caused us, to focus on YouTube ahead of other platforms," Bedol says.

Analysts believe YouTube has made a wise investment at a time ad rates for online video are rising.

YouTube can be successful with just a few big hits — think of Rebecca Black's "Friday" — even if thousands of videos fall flat. It's similar to the hit-or-miss approach to traditional TV and movies.

"The investor community does not look at this as money wasted," Macquarie analyst Ben Schachter says.

Since promising to share ad revenue with its most popular uploaders in 2007, YouTube has invested in original content mainly by paying for equipment and training new artists, but it was never as big as this.

Backing up its new strategy, YouTube also revamped its homepage to prioritize channels and recommendations above just the most-viewed videos. The revamp allows advertisers to target popular channels or categories of content more easily.

YouTube's funding plan takes a page from Apple Inc.'s playbook. When the iPhone maker launched its App Store in 2008, a $100 million seed fund created by Silicon Valley investor John Doerr spawned hundreds of thousands of new apps.

"Our developers are not software engineers," YouTube's vice president of global content partnerships, Robert Kyncl, told a convention in January. "Our developers are Hollywood stars, are online stars, are regular folks like you and I."

If nothing else, the injection of funds will spawn content never before been seen on any screen, large or small.

"Fast Five" director Lin, who is teaming up with YouTube stars Ryan Higa and Kevin "KevJumba" Wu on the "YOMYOMF" channel, said his focus is not to try to find audiences with stereotypical Asian-American content. Rather, the idea is to give a platform to people who have unique voices but haven't been heard yet.

He says Higa and Wu didn't follow any set rules when they jumped to popularity with a mix of oddball humor, brutal honesty and rap.

"They just did what they loved, and people came," Lin said. "If we're going to fail, I would rather go out with that philosophy."

___

Online:

KassemG's parody of Christmas movies, http://bit.ly/yzTt5i

Si, Es I, Pepe, http://bit.ly/AquLL8

Epic Rap Battles of History, http://bit.ly/xsjKks

Ray William Johnson, http://bit.ly/wYDiaC

YOMYOMF, http://bit.ly/ygxnuH

Network A, http://bit.ly/wDeiZY

Anthony Zuiker's partner, BlackBoxTV, http://bit.ly/yQFM13

 
  • StevenD  •  Englewood, Colorado  •  3 months ago
    Lame. The cool thing about Youtube is that it's NOT Hollywood.
    • S 3 months ago
      i hear you StevenD
    • Jeff 3 months ago
      Agreed
  • Janet  •  Birmingham, Alabama  •  3 months ago
    I have a Youtube channel, and I'm not fond of the new layout. It's not user friendly at all. I think Youtube/Google has made a big mistake here.
    • Derek 3 months ago
      You got that right. The new channel layout is pathetic.
    • Ardiva 3 months ago
      I agree with both of you.
    • John 3 months ago
      And they are not paying attention to the complaints.
  • 1964nickel  •  San Angelo, Texas  •  3 months ago
    Dear YouTube:

    Are you frickin' idiots?!! You changin' the name to "HollywoodTube" while you're at it? You're already destroyin' the little channels like mine and so many others who are just there to share what they have with others. First you take away our "Friends" and give us only "Contacts" instead. Then there' the horrid new video manager layout, which makes managing playlist and such a headache of the highest order. But the piece de resistance happens March 8 when you shove the new bland channel design down our throats whether we want it or not. I may only have 228 subscribers, and only 40,000 views per month, but every single one is just as precious to me as if they were numbered in millions.

    So in conclusion - YOUTUBE SUCKS!!

    Thank you for your time,

    A real ticked of YT channel owner.
    • jasoncv20 3 months ago
      Yes it does sucks I agree totally!!
    • dontlookatmynamebitch 3 months ago
      More like "UsTube"
    • Just Saying 3 months ago
      So true. It's hard to find quality channels to watch that have actual good content. To much crap on Youtube now a days
  • StayHigh  •  Los Angeles, California  •  3 months ago
    UGH. Hollywood. Leave YouTube ALONE! Don't turn it in to tv
  • letsdothisthing  •  Houston, Texas  •  3 months ago
    Their new Channel design change sucks! They ruined a good thing.
    • No QE3! 3 months ago
      Yes! Users can no longer promote other users because you cannot view or access the subscriptions, friends and subscribers of other users. Users are now trapped in their own-made littles worlds that others cannot peer beyond the boundaries of the users.
  • John  •  3 months ago
    YouTube sure screwed up their site with their recent changes. Now you have videos on your home page forever with no way to remove them. I have videos listed for over a month. It makes you wonder if they even use their own site. I go to YouTube less and less because of these changes and don't expect them to fix it.
    • Ribz 3 months ago
      That's because they probably intend to start charging for the "copyrighted" videos people have on their home page .... You can't delete them, so they have "proof of purchase." I think soon, we will all be seeing internet charges to get into the websites we now visit and read for free.
    • entropy 3 months ago
      You can still remove them. Check the videos you want to remove, go to Actions and Delete.
    • Samimy 3 months ago
      i am an electronics Engineer, basically i know a TV and a monitor are same in design and engineering behind them only a little differences.
      but i don't know why i hate TVs but love Monitors.
  • Micah S  •  Farmington, Michigan  •  3 months ago
    I personally prefer the "no name" personalities that make it big over established celebrities. They already have a ton of money. Youtube should help the "ammatures" out.
  • Shadow  •  3 months ago
    Soooooooooooo now H-wood is trying to take over Youtube while they tried to not only destroy it but the entire internet as we know it....Google What are you doing!?
  • Mocha Bear  •  Boston, Massachusetts  •  3 months ago
    So in other words, it's no longer "YouTube" but "TheirTube". Contributions from regular people - which made the site what it is - are now deemed less interesting then the overproduced crap we've been force-fed on TV for decades.
  • dr  •  3 months ago
    you tube could always employee regular citizens to help with this rather than elitists.
  • duber  •  3 months ago
    Bad decisions are bad. It opens the door for other amateur-friendly video sites to develop, however. Let youtube shoot itself in the foot as much as it wants.
  • Elliott  •  Providence, Rhode Island  •  3 months ago
    Remember when Youtube had people that were famous for more than "OMG LOOK FORUM, I MAKE BUTTSEX JOKES AND USE OTHER PEOPLES VIDEOS! HURR DURR"
  • Jacob  •  Lima, Ohio  •  3 months ago
    "The online video giant is aiming to create 25 hours of programming per day"

    Ummm....isnt there 24 hours in a day?
  • Raymond  •  3 months ago
    " especially the 18- to 34-year-old age demographic that advertisers covert. " Advertisers do not hide that age group, they covet it. It is that group that owns all four versions of the iPhone and all the other gadgets. At 35, it becomes more important how one spends money.
  • caleb  •  Longview, Texas  •  3 months ago
    youtube better be careful. if they change too much, they will become the same way as Myspace: too un-personal, will be outsourced by some better video hosting site who knows what people really want, and forever forgotten by the internet.
  • aaron m  •  3 months ago
    Youtube isn't for famous people, its for average people who want their 15 min of fame. No one wants to watch famous people being even more famous. Bad idea.
  • claxton  •  3 months ago
    youtubers have FAR more talent than the tv shows or hollywood actors
  • Scott  •  3 months ago
    Google Co./brand should stay out of YouTube. Stop trying to shove me Google down my throat when I want to access YouTube videos, I know they own it but I'm not there to check my mail! The 'forced' idea of merging Google and YouTube accounts was a nightmare.
  • Scott  •  3 months ago
    The whole idea of merging Google and YouTube accounts is a NIGHTMARE!
  • Flynn  •  3 months ago
    Keep the brainwashing propaganda out of youtube.
 
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