Click to Skip Ad
Closing in...

YouTube's Choice: Funding 30-40% of Original Channels for Second Round

Photo of Beth Hanna By Beth Hanna | Thompson on Hollywood November 12, 2012 at 3:13PM

After YouTube socked nearly $100 million into original content channels last year, the company now has to choose which of its most successful partners will receive further investment. Reportedly only 30-40% of the original recipients will see an additional round of funding, but this time YouTube partners could glean a total of some $200 million.
2
Eric Rippert and Anthony Bourdain on YouTube's Reserve Channel
Eric Rippert and Anthony Bourdain on YouTube's Reserve Channel

After YouTube socked nearly $100 million into original content channels last year,  the company now has to choose which of its most successful partners will receive further investment. Reportedly only 30-40% of the original recipients will see an additional round of funding, but this time YouTube partners could glean a total of some $200 million.

In the first round, YouTube cast a wide net, giving money to a variety of projects. A year later, it's apparent which sank and which were able to swim. A celebrity name wasn't enough to buoy a project into a hit, although this was a main strategy in terms of channel creation (Ashton Kutchter, Amy Poehler, Rainn Wilson, Jay-Z and a slew of others were all initially recruited). Meanwhile, the channels that prioritized amassing a large viewership came out ahead, with YouTube's top 25 ranking new channels averaging more than a million hits a week, and tallying more than 100K subscribers (i.e., repeat viewers).

Warner Music's Sound Channel and the lifestyle Reserve Channel (which features chef Eric Rippert) have done well. A more extensive list of successful channels is here.

Another success story is John Avnet and Rodrigo Garcia's WIGS, a channel targeted at women aged 25-48, with a Geico advertising partnership. Indeed, bringing advertisers into the fold has been part of YouTube's plan from the beginning, with Dodge, Gillette and Toyota also placing ads on various channels. Serialized, TV-like shows are attractive to advertisers, but their real value is hard to quantify.

Indiewire benefitted from the first round of YouTube funding, with a partnership with the Cinefix channel, backed by Berman Braun. Check out the official Indiewire/Cinefix YouTube page here.

This article is related to: YouTube, News, Digital Future


E-Mail Updates








Thompson on Hollywood

Born and raised in Manhattan, Anne Thompson grew up going to the Thalia and The New Yorker and wound up at grad Cinema Studies at NYU. She worked at United Artists and Film Comment before heading west as that magazine's west coast editor. She wrote for the LA Weekly, Sight and Sound, Empire, The New York Times and Entertainment Weekly before serving as West Coast Editor of Premiere. She wrote for The Washington Post, The London Observer, Wired, More, and Vanity Fair, and did staff stints at The Hollywood Reporter and Variety. She eventually took her blog Thompson on Hollywood to Indiewire. She taught film criticism at USC Critical Studies, and continues to host the fall semester of “Sneak Previews” for UCLA Extension.