Youtube and Hollywood

Youtube is popular and grew because of the diverse content that was uploaded by millions of people around the world – from gamers to dog-lovers to parents who upload videos of their children.

Now, Youtube decides to invest millions of dollars to promote high production film makers in creating and uploading videos to Youtube.

This entails a decrease in views of normal and sub-par videos, as viewers are going to watch higher quality videos with the limited amount of time they have. This will dissuade current video makers from creating new content on Youtube as they can’t compete with the higher quality videos.

Youtube is losing its value proposition. Once they are filled with professionally made videos, it would be indifferent from television, where there are professionally made shows and movies along with long commercial breaks. The only point of difference between TV and Youtube is that one is seen from computer and the other from TV.

Once it has established this new image, current video makers could upload their content to other sites, such as Youtube’s competitors, thus, gain popularity. Viewers, who contribute to Youtube’s income, could leave and watch from other websites with more diverse content.

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