Now the Television would soon have to make some amendments and bring about some revolutionary changes if at all it has to compete with the online players such as You Tube. The six year old video sharing website has become the second largest search engine in the world after Google. It is generating two billion views a day at the moment which is about 50% higher than what it used to a couple of years back.
You Tube was bought by Google in 2006 for $1.65 billion and now it is all set to take on the TV. “We believe that the distinction between internet and TV viewing will fast disappear as on-demand video takes centre stage,” says Gautam Anand, director, Google (Asia-Pacific Japan).
Of late, You Tube has tried adding new streams of content and figuring new ways to make money. In the US, it has signed up with MGM and CBS to let them upload films and TV serials with advertisements. Last year, it launched an online film rental service in the US but online video services like Netflix, Hulu and even Facebook present some stiff competition to the player.
The moment Google isn’t ready to disclose if You Tube is profitable yet, but the company says it will continue to offer free content and monetise the traffic to generate ad revenues. It is monetizing over 2 billion video views in the US every week and has more than 1,000 partners.