Original content helps YouTube's advertising business grow rapidly, Google begins to focus on subscription services

Google's online advertising business has become the engine driving the company's performance growth. In particular, the video advertising business on the YouTube platform is developing rapidly. Google has begun to take the YouTube subscription service seriously. The biggest contributor to helping this service continue to gain new users is Original content.

Foreign media wrote an article on March 1 that Google's online advertising business has become the engine driving the company's performance growth, especially the video advertising business on the YouTube platform is developing very rapidly. Google has begun to take the YouTube subscription service seriously. The biggest contributor to helping this service continue to gain new users is original content.

Google takes YouTube subscriptions

seriously In the first half of the quarter, Google has been growing its video advertising business on its YouTube platform, helping advertisers attract more viewers and traffic. Google has also begun to gradually focus on YouTube's non-advertising business.

YouTube launched a paid subscription service YouTubeRed in October 2015 with a monthly price of $10. The service mainly provides users with ad-free video and music content and allows users to watch offline.

Google announced during its earnings conference call in the fourth quarter of 2016 that it has produced 27 original dramas so far, such as "This is Everything: Gigi Gorgeous", a hit original drama that promotes the growth of new users. Original content helps streaming service providers strengthen their brands and drive growth in viewing time.

Investing in original programming is nothing new, and many companies such as Netflix and Amazon are doing the same. Netflix plans to produce 1000 hours of original programming and plans to invest $6 billion in 2017 to produce original content.

Amazon is also focusing on increasing the amount of original content, with plans to triple the number of original TV series and original movies. Some of the famous original TV series that Amazon has completed or is producing include "The Transparent Family","Mozart in the Jungle" and "The Strange Man of the High Castle". It has also produced a number of original children's dramas such as "Wandering Leaves" and "Nick and the Sword of Light".

YouTube may be negotiating with major TV networks about channel broadcasts

. It is said that YouTube has been negotiating with the Walt Disney Company about channel broadcasts. It hopes to obtain broadcast rights on a number of channels on the Disney Network such as ESPN and ABC.

Google did not comment on its YouTube channel broadcast deal with CBS during its fourth quarter 2016 earnings conference call. But one thing is certain: Google wants to increase non-advertising revenue on the YouTube platform. This could help YouTube gradually increase its importance in the Google family.

Although Google did not disclose how much revenue the YouTube platform generated for the company, according to a report from market research firm eMarketer, YouTube's video advertising revenue in the United States has increased from US$770 million in 2013 to US$1.6 billion in 2015. As can be seen from the above table, this means that the proportion of revenue generated by YouTube in Google's total revenue in the United States increased from 3.0% in 2013 to 4.5% in 2015.

Editor: Nancy