Lets face it, this past year has been an amazing time for the new media industry. With YouTube creators reportedly making millions of dollars a year in ad revenue to multi-million dollar YouTube network acquisitions, there’s no question that the industry is growing rapidly. With that being said, there is a lot of excitement in the air for what’s to come for all of us.
Last week, we reported that Time Warner will most likely be investing $40 million to YouTube network Maker Studios. An insider recently told me that if this deal were to go through, this would put the company’s value at $200 million. Not too shabby for a company founded by people who just make videos on YouTube, eh?
Yesterday, at Business Insider’s IGNITION conference, Time Warner CEO Jeff Bewkes did an interview regarding his thoughts on whether he sees on-demand video sites like Netflix as huge competition. While most of his feedback on Netflix was very positive and optimistic, it’s clear from his tone that he feels unscathed by how big it’s grown so far.
As Business Insider said, when YouTube announced their $100 million dollar investment, people in the tech industries’ jaws dropped. For all of us in the new media industry, we’ve had similar reactions. However, as you will see in the video clip below, Bewkes will put us all back in place by pointing out that for this year, Time Warner will have spent $5 BILLION on content alone. In other words, “welcome YouTube”!
Bewkes remark definitely reminds us how far we still have to go in order to be on the same playing field as traditional television. However, with studies pointing out that online advertising is catching up with TV and that more TV viewers are watching online video, I think the day new media gives traditional media a run for its money will come soon.
You can watch the full clip of Bewkes’ comments below:
Source: Business Insider