YouTube Channels No Immediate Threat to Entertainment Companies: Analyst

NY -- YouTube's lengthy-expected channels initiative, that the Google-possessed video site finally revealed late Friday, isn't any immediate threat to entertainment companies, however it could grab some advertising dollars typically centered on TV and position Google like a competitor with time, Barclays Capital analyst Anthony DiClemente stated inside a set of Tuesday.our editor recommendsHollywood Conglomerate Earnings Season: Ad Outlook, Digital Deals to stay in FocusYouTube Announces TV Initiative With 100 Niche Channels The report, titled "Will YouTube's offering move the needle?," examined the planned launch close to 100 movie channels with your celebs as Jay-Z, Madonna, Shaquille O'Neal, Amy Poehler, Sofia Vergara and Tony Hawk, designed to produce a next-generation video hub. "While we don't believe it is really an immediate threat to galleries, content companies or marketers at this time, we all do believe this really is Google's initial step toward supplying a far more robust platform for appropriately created independent content, and believe the move positions Google to do something like a distributor inside a bid toward taking incremental ad dollars which are typically targeted at TV," DiClemente authored. For media and entertainment companies, with time, "this produces a growing threat when it comes to engagement, ad dollars and distribution, an incremental bidder for original content and the other vehicle for customers to circumvent the standard pay TV model," he cautioned. In the end, movie advertising may be the quickest-growing ad category online, and that he projects it to develop 43 percent this year to $2 billion. "We feel YouTube makes up about the lion's share of those ad dollars with $1.6 billion this year,Inch the Barclays analyst believed. "YouTube is distinctively situated here because it is undoubtedly probably the most viewed movie property with 161 million unique audiences in September." Using its funnel launches, Google "turns into a major player in independent short-form, appropriately created content, and sets itself as much as be new media distribution platform and gain incremental ad dollars," DiClemente came to the conclusion. BTIG analyst Richard Greenfield had stated inside a blog publish on Monday the YouTube channels would be the latest premium movie offer which will compete for customers' attention much like Netflix along with other movie companies. "We question if it is going to finish up being an adverse for present day leading/established content designers," Greenfield stated. "The typical U.S. household is watching over eight hrs of TV daily, and when you begin to layer inside a wide spectrum of content on the internet, especially older content, we feel traditional television and movie content, especially fresh/live content, are affected.Inch Related Subjects YouTube