January 10th, 2018
Recommendations for YouTube Strategy
YouTube’s strategy for online video generation needs to consider aspects such as its consumer base, positioning within the larger Google strategy, and existing partnerships before its acquisition by Google. Such considerations would ensure that the entity does not alienate its users, remains committed to Google’s strategic objectives and avoids significant adverse effects of cutting links with former partners.
With respect to users, the strategy that YouTube can adopt may be delineated from evaluation of the demographics of users who create and access UGC, since such is the focus of the entity. In this respect, the most active population in creating UGC is the Millenials (13-24 years) with a 56 per cent share (Cool, Seitz and Mestrits 22). As people grow older, generations X (25-41), baby boomers (42-60), and matures (61-75), according to the statistics presented in the case, their propensity to create UGC reduces. Even on the statistics on viewership of videos uploaded, young individuals (18-29) years appears to predominate in all categories (Cool, Seitz and Mestrits 19-20). Such statistics would indicate that a majority of the YouTube users are young individuals, some in school, hence might not have the resources to pay for online content. In this respect, a recommendation for YouTube would be to center its strategy on ad-funded, free content.
The above recommendation presents other aspects that YouTube strategy should embody. One of these is to pursue revenue-sharing agreements with various copyright owners, in exchange for ad-placement on their content, and to cover for litigation in the event of copyrighted material not uploaded by the copyright holders. Rather than pursue a strict filtering policy, a case that has failed in previous attempts as documented in the case, YouTube should pursue the strategy of encouraging copyright holders to identify materials on YouTube infrastructure that they have not uploaded, and opt for such material to be pulled down or for retrospective revenue sharing agreements.
With regard to YouTube positioning in the Google diverse offers, YouTube needs to operate as an independent operation, focused on UGC, rather than integrating into Google Video’s strategy. Such a strategy will help the entity to maintain partnerships with entities that are in competition with Google in offering access to longer, higher quality content from players such as media companies and movie production companies. Establishing such a delineation would also ensure that the entity does not lose focus of its customer base, deviating into a paid model that drives such a customer base away.
Cool, Karel, Matt Seitz and Jason Mestris. YouTube, Google, and the Rise of Internet Video. Kellog School of Management, 2009. Print.
Gartner. Google Will Face challenges in the Wake of YouTube Acquisition. 2006. Web. 22 August 2012. <http://www.gartner.com/resources/144000/144098/google_will_face_challenges__144098.pdf>.
IDC. Assessing the High-Definition Online Video Opportunity. White Paper No. 218005, 2009. Web. 22 August 2012. <http://mamakspot.googlecode.com/files/HD_Online_Video_Opportunity_wp.pdf>.
Newkirk, Christoper D. and Thomas A. Forker. “Does You Tube’s Bright Past Mean a Cloudy Future?” Intellectual Property and Technology Law Journal 19.1 (2007): 1-6. Web. 22 August 2012. <http://www.arthurchapman.com/wp-content/themes/arthurchapman/inc/iptecharticle-1-07.pdf>.