YouTube has been undergoing a lot of expansion in the past couple of years with the arrival of things such as YouTube Red and YouTube TV. Now, a new report is claiming that while a third service is in development, spending on original content is being capped.
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Original content is key to any streaming service thriving, and with the likes of Amazon and Netflix as competition, YouTube has always had an uphill battle. Millions of dollars have been spent producing original content for YouTube Red, but that’s apparently being put on hold for the moment according to a Bloomberg report.
To be clear, YouTube isn’t going to stop producing original content, but it is putting a cap on the budget. This means we’ll still get plenty of YouTube Red Originals, but a “flat budget” means we won’t see growth, and YouTube will likely fall further behind Amazon and Netflix in this area.
YouTube CBO Robert Kyncl didn’t confirm the change in budget, but did confirm in a statement that YouTube still has plenty in the pipeline.
YouTube Originals are a driving force for YouTube Red, and we have a full slate of Originals already planned for 2018 and 2019. While we don’t comment on speculation regarding our budgets, you’ll see us continue to invest heavily in original programming as we ramp up our overall efforts to promote YouTube Red over the next year.
Also mentioned in the report is YouTube’s upcoming music service. Apparently, the coming service is using a lot of resources within YouTube. This comes just a few days after YouTube CEO Susan Wojcicki referred to YouTube Red as a “music service” during an interview. We’ve seen tidbits about this service, potentially called “YouTube Premiere” in other areas, but there’s still a lot unknown about it.