Two years ago, YouTube shifted its focus away from competing with Hollywood giants like Netflix, abandoning its ambitious plan to create original shows. This move was initially seen as a setback for the platform, but it proved to be just a temporary obstacle in its journey to success.
Today, YouTube has emerged as the most popular streaming service on U.S. televisions, surpassing its former competitors. This unexpected rise highlights how the internet continues to reshape the landscape of television and redefine viewer habits.
During the pandemic, YouTube experienced a significant increase in viewership on TVs as people sought more content while staying at home. This trend has persisted, indicating a growing preference for a more relaxed TV viewing experience.
YouTube’s approach to content creation sets it apart from traditional media companies. While established players make substantial financial investments in original content, YouTube relies on user-generated videos. Creators bear the production costs, and if a video performs well, they receive a share of the ad revenue. This hands-off model has allowed YouTube to pay creators $70 billion over the last three years without shouldering financial risks.
Neal Mohan, YouTube’s chief executive, considers the decision to empower creators with content choices as a crucial lesson learned by the platform. This approach has been instrumental in YouTube’s success and distinguishes it from the heavily-funded strategies of legacy media companies.
