Google has been trying to turn YouTube into a sleeker, slicker, money-making site for nigh on a year now. Although it’s made progress, Hulu has made more (money and progress). If you can’t beat them, join them, at least if the rumors are accurate.
The Problem With YouTube
has been for a long time, and will continue to be for some time to come, the most popular online video site in the world. There is, however, one small problem: a distinct lack of revenue coming in. It’s not that the traffic isn’t there to make the site a profitable one for Google, but the question of how to turn viewer numbers into cold hard cash is one that the site has been struggling to find an answer to.
The big problem for Google is that none of the user-generated content can be advertised on due to the risks of piece of copyrighted material slipping in there. The ongoing lawsuit brought by Viacom against YouTube certainly isn’t helping.
Professional Content Vs. UGC
This has lead YouTube to try and increase its range of professional content over the course of the last few months. This content, such as movies and television shows from the likes of MGM and CBS, is where the real money is, with advertisers happy to pay for their ads to appear alongside these professionally-made videos.
We’ve already seen how professional content is the way in which online video is headed, and the success of Hulu is testament to this fact. YouTube currently has both UGC and professional content mixed up together but a new redesign due in April could change all that.
YouTube Redesign
According to ClickZ, YouTube is to unveil its new design imminently. Originally intended to go live last week, the site claims it will now happen on April 16. The aim is to clearly separate the UGC and the professional content, segregating the two in order to make two distinct channels of content.
In the professional content corner will be Movies, Music, and Shows, while all the user-generated content will be lumped together in a Videos channel. This is despite the UGC making up an estimated 96 percent of the site. At the moment. All of the premium or professional content will carry in-stream advertising.
Stealing From Hulu?
I say at the moment because YouTube is unlikely to go into this new phase of its life without plans to increase the proportion of professional content on the site. The Music channel could be exactly what the record labels need to re-sign contracts with the site, while the Movies and Shows channels will need populating if YouTube stands any chance of pulling this off.
This redesign, if real, would make YouTube much more like Hulu than it currently is. From having visual markers in the videos for adverts, to a ‘dim the lights’ feature in order to make playback more enjoyable, ClickZ thinks YouTube is copying Hulu where it can in order to steal the limelight.
I guess we’ll see on April 16 whether it succeeds.
