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YouTube's Ad Video Shift Was Inevitable

YouTube is changing, something the online video provider must be worried about. Until now, the company never had to pay a penny to get users to upload content. But it also never made any money.

Video advertising is coming to YouTube, and Google is hoping this doesn't tick off its user base, which delivered 1.75 billion page views in December, according to Nielsen/NetRatings. YouTube had to move in this direction eventually; monetary incentives will soon be necessary to keep the good content creators around.

In being acquired by Google, YouTube has bought itself more time to tinker with its business model, but there's no doubt Google needs YouTube to be a key growth driver in the future. Smaller players like Revver, and Metacafe have dabbled in revenue-sharing, but they make little money, their producers make far less. In truth, these companies need a YouTube audience to be successful.



Read the whole story at Marketwatch »

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