YouTube Launches Redesign

Posted on April 6th, 2009 (2)

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YouTube with their first to market advantage in the user-centric ecology of online videos is sidelining this ideology in search of a better way to monetize video content. On April 16th, YouTube’s site redesign will forgo the current navigation scheme in favor of promoting premium content.

The navigation bar currently displays ‘Videos, Channels, Community.’ This will change to ‘Movies, Shows, Music, Videos.’ The first three categories will focus on premium content with Google’s content providers, pushing in-stream advertising. User-generated content will be condensed under ‘Video.’

It’s well known that major brand advertisers are shying away from user-generated content. With the duality of advertising click through rates between high and low quality content, YouTube is making a grab at major brand advertising.

This power grab, as most publications are reporting, is to copy Hulu.com. The success of Hulu, with their high click-through and retention rates had YouTube scratching their heads. The YouTube player will copy Hulu’s with visual markers indicating an advertising spot, as well as background dimming around the video.

YouTube as a market shaper in online video is refocusing how they’re generating revenues with their redesign push to premium content. The current implementation of linear advertising models isn’t working, and it’s hoped that marketing this same model to premium content will increase click-through and retention rates.

What’s interesting is the notion of premium content and user-generated content. YouTube is having trouble figuring out how to generate sustainable revenues within the user-centric domain. The argument that traditional, linear advertising models simply don’t equate with video content can be made. For premium content, users simply put up with it. Is that something you want your brand to represent? We think interactivity within video is the answer. Interact with a brand, don’t force it.

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