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YouTube To Add Original Programming in Europe

October 16, 2012
By Greg Franzese

Signaling that YouTube's original-programming experiment is paying off, the video site announced it will extend this initiative to Europe with at least 60 new channels.

Though YouTube didn't disclose its investment, the Google-owned site dropped $100 million in 2011 -- with advances of up to $5 million per channel -- to fund the production of high-quality original content for 100 channels. Earlier this month, the streaming site scored a major victory with "Recipe Rehab," a YouTube-funded original that landed syndication on almost 200 ABC affiliates as part of the network's educational Saturday morning programming. 
 
In Europe, the content will be a mix of celebrity-oriented, niche and established programs. Some of the content creators on board include BBC Worldwide, Jamie Oliver and Euronews.
 
While Google hasn't disclosed the return on its investment, Robert Kyncl, YouTube's global head of content, suggests it's doing just fine. 
 
"All of this momentum would not be possible without revenue," Kyncl said. "When we looked at our skippable ads in the U.S., we are now making as much revenue per hour as ads on cable TV."
 
With all this new content, YouTube's also eyeing new revenue streams. Kyncl has hinted that the service is entertaining an idea to charge video subscriptions down the line. YouTube is forecasted to generate $3.6 billion in gross revenue according to a Citi analyst, which, while no small sum, is a mere fraction of Google's roughly $40 billion in annual search advertising business.
Posted in Online Video Trends
Tags online video, original content, original online programming
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