YouTube Channels Offer Original Content at Lower Production Costs

  • Just as other online services such as Hulu and AOL have ventured into the content creation business, Google is pushing forward its original programming on YouTube channels.
  • “YouTube said Wednesday it would spend $200 million to market original content through a variety of channels,” reports the Wall Street Journal. “So far, YouTube’s strategy isn’t to own content outright but partner with those who produce it and generate advertising revenue.”
  • The investment has created film-quality productions like the channel WIGS, which offers scripted dramatic series and short films featuring stars like Jennifer Garner and Julia Stiles. Impressively, WIGS has done all this on a tight budget.
  • “But with only modest funding from YouTube — it is giving channels only up to a few million dollars each, far less than the cost of a typical TV production — it is impossible to pay average industry salaries,” the article explains, adding actors and crew usually work for a $15/hour wage.
  • While YouTube isn’t looking to replace other sources of entertainment, the site definitely attracts a wealth of viewers — 750 million unique visitors a month, according to a recent comScore report.

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