YouTube Next To Create Original Content

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Encouraging the development of ever more content creators, YouTube on Tuesday announced the acquisition of Next New Networks. Since its launch in 2007, Next New's partner networks have attracted over 2 billion views and 6 million subscribers. 

Per the deal, the video production company will form the nucleus of YouTube Next -- a team tasked with fostering the creation of original content, its monetization and the development of complementary services and initiatives.

Thanks largely to YouTube, Google display ads achieved a $2.5 billion run-rate in 2010. Looking into the future, YouTube is betting that a larger pool of experienced content creators will spawn continued interest in the platform.

Some industry watchers even see the acquisition as Google's move away from premium content.

"With this move, YouTube is clearly stating that Hulu and Netflix have won the war for studio content," says Keith Richman, CEO of Break Media, a male-oriented video ad network currently owned by Lionsgate Entertainment. "YouTube is now going for semi-professional and will define that market."

Tom Pickett, YouTube's director of global content operations, and now YouTube Next, said that joining forces with Next New would help more content creators turn their efforts into sustainable businesses.

"Within YouTube, Next New Networks will be a laboratory for experimentation and innovation with the team working in a hands-on way with a wide variety of content partners and emerging talent to help them succeed on YouTube," Pickett said in a blog post.

"A big part of that growth has been the more than 60 independent producers that have partnered with us as part of the Next New Creators program, including popular YouTube partners," Fred Seibert, co-founder and CEO of Next New Networks, said in a blog post. Seibert said he will be stepping down as CEO, while continuing to produce cartoons for another company of his, Frederator Studios.

YouTube Next-branded programs build off past partner development initiatives, like the Partner Grants Program, which advanced partners' funds based on future YouTube revenue shares.

YouTube's partner program, which grew to more than 15,000 members in 2010, put the spotlight on original content in exchange for pairing the videos with display ads.

 

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