J
Jack Holt
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As rival online video services kick it into high gear, Google’s YouTube unit is pushing to lock up its top stars. This is happening in the wake of both Facebook and video start-up Vessel courting YouTube stars in hopes that they’ll move away from YouTube’s platform. This courting is forcing Google and YouTube to offer top videomakers bounses if they sign multi-year deals where they agree to post content exclusively on YouTube for a period of time before putting it on another service. But that’s not all.
YouTube’s also been offering to fund additional programming by a few of its video makers and it all stems from a concern by YouTube executives who are particularly concerned with Vessel. Robert Kyncl, global head of business, along with the YouTube unit have been attempting to hold on to its stars because of this concern.
Vessel is planning a subscription video service, and has aggressively courted YouTube stars in the past few weeks. The company, that was founded by former Hulu CEO Jason Kiler has raised $75 million in venture capital and is trying to secure programming ahead of the year end launch. Apparently Vessel and other competing video services have made some lucrative offers, at least according to one YouTube content creator.
“I would like to remain on YouTube,” says this person. “But some of the competing offers are incredibly attractive.”
With one of Vessel’s strategies to garner subscribers being to offer an advanced look at popular short-form videos, its trying to get artists to post videos exclusively to its service for up to three days prior to putting it up elsewhere. One of the people approached by the startup has said that Vessel has offered to pay an advance based on how well their video performed on YouTube. The startup has told video creators a subscription service will provide a “nicer neighborhood” for their videos over that of YouTube.
These new video services are forcing Google to rethink its traditional platform where video creators can upload whatever they choose to YouTube. However, rather than resting on its laurels, the company is moving with rare urgency.
Most YouTube visitors only visit the site occasionally and popular video makers are strategically important for the service as their channels draw back regular viewers. There’s no saying whether or not YouTube’s Music Key has affected those who come back to the service regularly but given it’s only a few weeks old, those numbers may change.
Almost all of YouTube’s content creators receive the same 55 percent share of revenue from advertising that appears with their videos. Those who make high-quality videos have pushed for more revenue share than those who upload home videos. However, if others find out that some video creators are being paid more, they may seek similar deals, in turn, increasing YouTube’s costs.
While Michelle Phan, YouTube style guru, has said that Vessel’s service looks “stunning,” she adds that YouTube’s online niche is well-defined and isn’t at risk of losing users.
“If you want to get lost in the Internet black hole you go on YouTube,” she said.
A spokeswoman for YouTube says the company has long invested in its video makers, and has been “been increasing that support through a broad range of activities including marketing and content funding.”
Vessel decline to comment on the issue while Facebook stated that it regularly holds discussions with content creators to see how they can better utilize social media, and more importantly, Facebook.
However, YouTube doesn’t just face issues from competitors. Content creators who want to get their content out to as many as possible are looking at other avenues to push out their media. Some content producers are toying with posting their videos to other services like Facebook or vessel. Given YouTube’s monthly visitors pushing more than a billion people monthly, the streaming service has long dominated video on the Internet. Because of this, some creators are fearful, if not hesitant, of Google’s wrath should they move and are skeptical that rival services will take off.
Should they sign with rivals, creators aren’t expected to part ways with YouTube entirely as they don’t want to lose access to YouTube’s huge user base which is where the period of time exclusivity comes to play.
source: The Wall Street Journal
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