Tempting The Giants

Google, parent of YouTube, is far along on its trek to make partnerships with as many media companies as possible. The goal is to ensure that the content on YouTube is copyrighted and licensed so as to avoid future debacles like the one between Google and Viacom. The only problem is convincing the larger media companies (like Viacom) that giving up some control of their content by putting it on YouTube will be beneficial for both marketing and monetary reasons. Most large studios have been reluctant to cut a deal with Google and YouTube, though there has been marked success with smaller companies.

With each partnership, YouTube has created a designated channel for each company. For example, PBS has its own channel, which can be found in the "Partners" section of the "Channels" menu on the YouTube website. Other partners' channels include sports associations such as the NBA and NHL, along with MTV and Cartoon Network's 'Adult Swim' program. This is a great way of exposing each network's content and gathering an online fan base.

How can companies monetize the content they license to YouTube? According to Google, ad revenues will be split between the content provider and Google/YouTube. While at this time the revenue from ads is relatively small, undoubtedly turning off some possible partners from signing deals, the time of pre-rolled advertisements is probably not too far away. Unless users are absolutely turned off by the idea of scowling through a 5 to 15, or even 30 second advertisement before a video, there is a strong probability that decent money can be made through splitting ad revenue.

But how do they convince viewers that watching commercials is worth it? Well, for one, make the ads funny. There area numerous commercials that I enjoy, such as this Sierra Mist ad:



I find that hilarious, and I feel that if pre-running commercials are funny, and much shorter than 30 seconds, there won't be much of a problem for YouTube addicts. Also, unless a legitimate competitor to YouTube arises with equally attractive content and zero commercials, Google doesn't have much to worry about and they can start trying to make back some of the ridiculous amount of dollars they spent on acquiring YouTube.

Another possibility is to run commercials only on major studio content (like NBC, CBS, Viacom, etc.). All user-generated content could be commercial free, unless the user is affiliated with a studio or publisher, then the terms would be stipulated in the contract. Though this may stem users to broadcast the ad-laden content themselves, thus infringing copyright, a fail safe filter could be developed to prevent anyone but the licensed company from running the video, thus forcing viewers to see the commercial. This is just a thought.

So while Google is busy trying to get everyone on board with YouTube, is it safe to say that we are diving into an even deeper pool of advertisements? Will there eventually be an Oscar's Award Show for commercials? We are so saturated with advertisements that anything seems possible at this point. Here is another idea: Create competitions for YouTube users to generate their own commercials to be run before videos, much like what Doritos did for the Super Bowl.

The promotional possibilities of YouTube are frighteningly endless. These days the Internet is such a huge player in marketing that it is downright silly to not take advantage of every possible outlet. It is only a matter of time before we see every major network willingly partnering up with YouTube and other online media companies.