LiveIssue... Google prepares to fend off army of 'YouTube killers'

But the talk has now turned to a wave of potential ‘YouTube killers’ — portals which look likely to grab market share and more than just a sliver of the potential revenue pie.

The new frontline it appears, will be drawn between user-generated sites — like YouTube — and programming-focused sites which offer portals and content owners a dual revenue stream, monetising the platform through advertising and content downloads.

Joost, a peer-to-peer streaming service developed by the founders of Kazaa and Skype which is still in beta testing, recently inked a deal to offer ad-supported Viacom programming. It also promises to be able to pinpoint users through a sophisticated IP targeting backend system, which will deliver both content and advertising relevant to their locale, which has marketers rubbing their hands in anticipation.

Then there’s the JV between News Corporation and NBC, which will deliver a raft of content to be supplied by the media conglomerate and partners, with ad options including pre-roll spots and sponsorship around entry points. BitTorrent, now legal but formerly best known for its run-ins over illegal file sharing, has also announced similar plans to offer ad-supported content by the end of the year, to supplement the revenue earned from content sales.

As one marketer tells Media, brands have been crying out for an online video platform which provides a safe environment through which to engage, meaning that as potential money earners, these programming-focused portals have a huge edge over YouTube. “Marketers on social media sites that buy run-of-network media have less control over what content appears next to their ad,” he says.

“Online video sites that have programming versus user-generated content could offer marketers more opportunities to position their brand and message to the ideal user demographic.”

Digital experts, however, have refused to join the media in labelling the newcomers ‘YouTube killers’, pointing out the two forms can co-exist, as they serve different audiences — those who create and view peer content, and those who are seeking professional product.

Importantly though, in terms of searching content, many argue YouTube’s functionality isn’t up to scratch for consumers, and as its popularity grows in terms of the amount of user-generated content, so will the problem. And, with brands showing so much interest in advertising in a safe environment, revenue will continue to be a challenge for YouTube.

“They’re getting Google adwords and site targeting, and even some brand launches, but in terms of expanding core revenue to include more advertising, this won’t be easy,” says Ralph Szeto, general manager, OneXeno.

But it’s worth noting that YouTube does have at least one ace up its sleeve: Google.