YOUTUBE FLEXES MUSCLES TRIGGERS MELTDOWN?



        If everyone is making money out of originally filmed entertainment, by which logic should YouTube stay out of the race? As it happens, YouTube is wildly popular all over the world. The sum total of subscribers across the countless YouTube channels is a mind-boggling multiple of the total world population. And despite frequent ad breaks, despite the competition from original scripted content, YouTube has not witnessed any decline in numbers of hits. This consumer base is now likely to become the springboard for Google's next push into the SVOD model.

      Until now, YouTube's AVOD model is more popular than the premium ad-free service. Who e this shows that watchers don't mind ads, it is also showing Google a possibility that there is scope for drawing in the paying crowd. To this end, YouTube is going to fund a range of content that will include music, documentaries, reality series, talk shows and scripted series for international markets. YouTube's targets include France, Germany, Japan, India, and Mexico. Apart from the scope as evidenced by the successes of the other competitors, YouTube is encouraged by the response it is getting. In India, the response to Hindi talk show UnCricket has exceeded expectations.


      Finally, here's the catch that's leading to a meltdown in valuations: some of the content will be posted exclusively on YouTube Premium, but a lot of content will be available on when Netflix and Amazon which are heavily investing in localized content, trying to expand footprint in India, YouTube's emphasis on localized content is a disruptive challenge. While all other FAANG players will be affected, there's however, a breathing space for Disney. YouTube has no plans for original shows for kids because this section isn't likely to drive premium subscriptions.

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