Google Is Secretly Spending Hundreds Of Millions Of Dollars Turning YouTube Into A Cable Alternative
Originally published: September 15, 2011
Last updated: September 15, 2011 - 7:57pm
Last spring, news broke that Google would spend $100 million loading YouTube up with original content. Two industry sources tell us that Google is actually spending much more than that acquiring content for YouTube – perhaps as much as $500 million or more. This source says Google is sending out RFPs and striking deals with cable programmers, independent studios, and even people that aren't primarily in the video business. A second source, this one involved in Google's acquisition talks with Hulu, says that the company's initial outlays for content are indeed in excess of $100 million and that they could easily reach $600 million over time. This kind of big spending on content makes sense out of Google's bid for Hulu and all the TV and movie rights it comes with, doesn't it?