YouTube Cutting Original Content Funding

Over the past year YouTube has been trying out a new system. YouTube tried to get original content providers to roll out several hours of new content every week. This new weekly content was designed to try and compete with cable companies and see if it was possible to become competitive with them by doing this.

YouTube has succeeded in their goal; they have numerous original content providers that they funded initially that are now profitable. The content providers and YouTube make money via advertising that is attached to the original content from the providers.

YouTube has announced however that they will be cutting funding off for roughly 30-40% of the original group of content providers due to lack of profitability. According to YouTube the content providers that they attracted did increase viewers but not all of them performed as well as others.

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