Hacompared with Bob Iger returned to the helm of Disney, and attention was drawn to the resignation of Reed Hastings at Netflix. CEO It almost caused a stir on media pages. It’s a sign of two things. First, Wall Street analysts and freelance writers in the entertainment industry pay little attention to YouTube’s business, despite it being the global hub for video and synonymous with it. . Second, how overshadowed by parent company Alphabet’s wobbly ramparts.Tech giant’s beleaguered boss Sundar Pichai is fighting war on so many fronts, from Microsoft’s chatGPTInspired by the Trustbusters and the Supreme Court’s breach of Google search, the happening on YouTube must look like a sideshow.
It does Mr. Wojcicki a disservice. Her decision to pass on to her lieutenant Neil Mohan may not have been the pinnacle of YouTube success. A slowdown in advertising, combined with competition from her addictive short-video app TikTok, has led to her second consecutive quarter of year-over-year declines in ad revenue.But as she watches, YouTube becomes an integral part of the entertainment world, and for many, her YouTube self made Handbook, Cookbook, Childminder, Jukebox, Yoga Instructor, News Channel and Time Sync all in one. It has 2.6 billion monthly active users and a simple but effective revenue sharing model that millions of creators rely on to keep their content pouring. YouTube Shorts, the counterpart to TikTok, average 50 billion views per day.
Data released this week by tech commentator Benedict Evans highlights how far the platform has advanced beyond social media videos to more mainstream content.YouTube Share in America tv set The ratings recently surpassed Netflix. Last year, Evans estimated that the company paid creators about the same amount that Netflix paid for big-budget productions. A star YouTuber like MrBeast garners viewers similar to his top hits on Netflix.
It’s an advertising juggernaut to boot. His $29 billion in ad revenue last year was about one-tenth of Alphabet’s revenue, but Richard Broughton of research firm Ampere Analysis said they accounted for a “significant portion” of his $140 billion broadcast worldwide. It is pointed out that it corresponds to “part”.tv set advertising market. Additionally, YouTube is competing with Spotify in music and podcasts, selling bundles of channels like cable on YouTube. tv set, and, like Amazon and Apple, are cutting subscriptions to other media companies’ streaming services. Additionally, on Sunday, it was reported that Americans had shelled out $14 billion for the right to broadcast live football. In short, we want China’s great firewall aside to be the stage door for all the small-screen video in the world, from user-generated clips and streaming to sports.
Wojcicki is as close to Mountain View aristocracy as possible, even if his surname isn’t Brin or Page. Sergey and Larry first set up his Google search engine in the garage. She definitely helped bring Google’s professionalism to her YouTube. In 2006, after the bohemian mess of her YouTube days, founded just a year before Google acquired her YouTube, she’s grown up in the room and an advertiser. became.As she departs, it’s worth asking if the post-adolescent YouTube is benefiting from her attachment to her mothership as much as before.Tim Mulligan midIa, another research company, I suspect Alphabet is actually hindering YouTube rather than helping it. Is it time for a spinoff?
There are many pros about YouTube. One is concentration. This is an upheaval in the entertainment industry, from TikTok and streaming wars to cord-cutting paid services.tv set, that laser-like focus is essential. Alphabet has a lot of other things to do to give YouTube its full attention. Next is the business model. Without the giant hand of advertising on your shoulders, you have more freedom to experiment with subscription revenue. A third argument has to do with regulators. The case, which he heard in the Supreme Court on Feb. 21 about whether YouTube violated anti-terrorism laws by using an algorithm that promotes extremist videos, was met with skepticism by a judge. . And Facebook is struggling with the political heat over content. But being part of a larger company than Facebook’s parent company, Meta, YouTube is an especially attractive target for trustbuster. Ability to extend services such as YouTube tv set Globally, it could be hampered by regulatory concerns about Alphabet’s size.
Alphabet could also benefit.Pichai’s flustered reaction to the chatGPT,artificial intelligence(AI) partnership between Microsoft and a startup called OpenAI, has cast doubt on his leadership. A YouTube spin-off would send a strong signal that he’s committed to such “generatives.” AIIt would also allow Alphabet to get ahead of the Justice Department (doj) sued Google in January over its monopoly on digital advertising technology. Alphabet denies monopolies. But if the court decides otherwise, a voluntary dissolution would be preferable, even if it is loosely associated with ad tech. doj– imposed half nelson.
YouTube’s reputation as an independent, publicly traded company can be eye-opening.That ad revenue is close to his $32 billion in Netflix revenue, with 80 million music and premium subscribers and tv set Earnings. Investment bank Needham’s Laura Martin believes it could be worth at least $300 billion, more than half Disney’s and double Netflix’s market capitalization.
Because if everything sounds too simple, it probably is. Page and Brin control more than half of Alphabet’s voting power and don’t want to be the first tech giants to start selling the family’s silver. But it’s not clear that Chinese-owned TikTok is in any rush to go public, so investors will probably be happy to get their hands on equivalent US shares, especially global shares. tv set Giant. So may the newly minted plutocrats of the creator economy. ■
Read the article by Schumpeter, a columnist on global business.
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https://www.economist.com/business/2023/02/23/its-time-for-alphabet-to-spin-off-youtube It’s time for Alphabet to spin off from YouTube