The business model of online video is evolving and could one day rival TV production studios. Google is investing $100 million to build dedicated channels for YouTube.
The development is still early. But shows produced exclusively for YouTube and funded by Google are starting to show up on TV. One example is the healthy cooking series, “Recipe Rehab.” The cooking series plans to make longer, 30-minute episodes that will begin airing on ABC stations nationwide, according to the Wall Street Journal.
Gina Hall of the WSJ reported today that the money being invested by Google and other content producers is raising eyebrows in Hollywood. YouTube might likely generate $3.6 billion in revenue this year, compared with $2.4 billion last year, according to a Citigroup analyst cited by the Wall Street Journal. AOL recently signed a deal to distribute its content on YouTube, including 20,000 videos from The Huffington Post.