Adam Sherwin
The Independent
September 17, 2011
If you want to learn more about Downton Abbey, a Google search might be the place to start. But now the internet giant wants to create its own hit programming, in a $600m move which could threaten the future of traditional broadcasters.
Google built a $200bn business from arranging information in an easily searchable form. But as the dividing lines between what we consume on computers, tablet devices and TVs dissolves, the California company intends to create and control more of the content that its services direct us to watch.
Google plans to turn YouTube, which it bought for $1.65bn, into a TV network offering up to 20 “channels” covering areas such as sport, news and comedy, and featuring programmes made and screened exclusively by the video-hosting site.
The YouTube network would be used to attract users to Google TV, a service expected to launch in the UK and Europe next year, which will allow people to switch between the internet and TV on their home sets, bringing YouTube to every living room.
According to the US website Business Insider, Google will spend up to $600m in original content and is cutting programming deals with the independent studios which would normally make drama and comedy shows for the big US TV networks.
“They are throwing around huge money,” an executive who found himself bidding against Google for video content is quoted as saying. “They’re fronting production costs to the tune of tens of millions of dollars per deal.”
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