Magazine article Variety

Are YouTube 'Killers' Lurking? Don't Bet on It

Magazine article Variety

Are YouTube 'Killers' Lurking? Don't Bet on It

Article excerpt

Youtube rules over the ad-supported online-video realm. As "Game of Thrones" teaches us, everyone wants to steal the crown.

Recent reports have cited several would-be challengers to Google's dominance, including Yahoo and Comcast. Meanwhile, YouTube multichannel network partners like Maker Studios - which recently launched - and Fullscreen are developing initiatives to bring more audience to their own platforms, to better monetize their content.

But characterizing any of these efforts as "YouTube killers" dramatically overstates their potential to threaten Google's entrenched position.

The barriers to entry of challenging YouTube may appear small. But it's no mean feat to build a large-scale, worldwide video-streaming site. And with YouTbbe, Google has established a vast, welloiled infrastructure and a brand with unmatched power.

When Google bought YouTbbe for $1.65 billion in 2006, it had a running start. The Internet company already knew what was required to run a massive, global Internet service. Google invested in building out YouTube so that it became the best place to watch and share video online - critically, adding tools and features for content providers.

Today, YouTube reaches more than 1 billion users worldwide each month - nobody else even comes close.

So what about all the stories that YouTube is going to face some big competition soon?

Yahoo's efforts, for one, revolve around approaching YouTube stars and trying to persuade them to bring their talents to Yahoo exclusively, with a slightly more favorable ad-revenue split than Google's 55% share to content providers, according to industry execs familiar with the company's strategy. …

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