With Netflix on the ropes and an Apple TV set
yet to appear, Google struck quickly -- if somewhat clumsily -- over
the weekend in an attempt to create the next generation of TV service.
The plan, in which Google’s YouTube will
create roughly 100 TV channels by paying a bevy of celebrities,
producers and big publishing companies as much as $5 million apiece to
create original content, will start to roll out shortly.
The
YouTube TV gambit, with a budget of roughly $100 million and aimed at
winning a piece of the $3.3 billion Madison Avenue spends on digital
video, is also a sly way for Google to circumvent Tinseltown’s refusal
to fuel its content ambitions.
YouTube TV partners announced late Friday include Madonna, Ashton
Kutcher, Jay-Z, skateboard legend Tony Hawk, plus corporate titans like
Hearst, Rodale and Meredith and news organizations such as Reuters and
the Wall Street Journal.
“Many of the defining channels of the next generation are being born, and watched, on YouTube,” wrote Robert Kyncl, an ex-Netflix executive, who runs content partnership for YouTube.
One partner said he and others were angry about Google’s decision to
make its much anticipated announcement at 10 p.m. on a Friday, leaving
few executives available for comment. YouTube will keep 55 percent
of the ad revenue their content generates; the partner gets the rest
while promising to contribute a set amount of hours and include some
amateur content in their service. Madonna and her manager, Guy Oseary, will operate a dance channel called “Dance On,” while musician Pharrell Williams’ channel, “I Am Other,” will champion independent thinkers. Thanks to MartianSky. - NyPost
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