YouTube TV could present some unique new opportunities for many content creators across the YouTube multichannel network.
BTIG analyst Rich Greenfield said in a new research note that the service will give YouTube creator content placement on par with linear TV programming.
“For YouTube content creators, they will now have the ability to have their content sitting right next to the best of what can be found on linear TV. This integration of linear and on-demand is likely to have significant vanity benefits for Google’s YouTube ecosystem of creators,” Greenfield wrote.
To back up his claim, Greenfield points to a video from YouTuber Philip DeFranco, who hosts a weekly show that routinely draws more than 1 million views on the platform.
DeFranco said as live shows on YouTube TV are wrapping up, the service will populate the screen around the show with related YouTube content.
“For the users, there’s more content for something they’re obviously interested in. For all of the YouTube creators, all of the sudden you’re being introduced to a brand-new audience. This could be massive for up-and-coming entertainment YouTubers,” DeFranco said.
DeFranco notes that YouTube could be using its relationships with networks and programmers and with its content creators to merge those markets.
“This could be huge news for our industry,” DeFranco said.
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YouTube creators already make a significant amount of revenue off the platform. Last year, the top 12 YouTube earners made $70.5 million combined, up 23% year-over-year. But getting their content in front of linear TV audiences who might not be considered the core audience for YouTube could help drive those numbers even further.
That potential for taking away from revenue from traditional linear TV is another reason YouTube TV is being launched, according to Greenfield. He said there is lots of TV ad revenue to be generated and that Google will benefit from getting access to inventory including the two minutes of ad time vMVPDs get to sell per hour on cable networks.
“This inventory may also make it easier for Google/YouTube to reach certain advertisers that have not been as interested in ramping dollars on the legacy YouTube platform. Even if YouTube TV is, generally speaking, a ‘me-too’ offering, at the end of the day, Google/YouTube should learn a significant amount about the U.S. TV advertising business by being inside of it,” Greenfield wrote.