Why YouTube is the new ClearChannel

A few days ago YouTube said it was creating a program that would pay content providers for their content. That's obviously great news for content providers, regardless of platform. It helps set a market for content not only for Internet video, but it provides a barometer for content value relative to other mediums.

There obviously will be a lot of money available in aggregate for content providers. It will be interesting to see how much individual creators make, not only for their most popular works, which will be trumpeted in the media, but for their follow-up works. What percentage of participants will be the "long tailers" in the program and what will their earnings look like?

It's not really a question. I already know how its going to play out. It will be just like the music business.

The music business has few barriers to entry. Anyone can put their music up for sale on the Net. Few barriers to content creation. It costs next to nothing for low-end music creation.

Marketing, however, is another story. It costs a lot of money to create visibility, unless of course you find yourself on the front page of a YouTube category page, or its home page. Which puts Youtube in a position of acting just like your typical big market radio station or music radio network.

Paying for content, which is good in so many different ways, also has a downside. YouTube immediately went from a small but interesting community for its original content, to basically being just like Clear Channel, responsible for programming its different "formats" with the "best" possible content that creates the greatest number of eyeballs and maximizes advertising revenue. It's big business, just like Clear Channel.

I'm sure community will be involved in selecting content for their "playlists" which they will feature, but the reality is that YouTube corporate will select the videos it promotes just as music is selected to play on the radio or to be featured on radio station and related Web sites. Ask bands and artists how they feel about the programming skills of for-profit radio stations these days — satellite or terrestrial.

How long do you think it will be before videos appear on YouTube slamming them for which content is selected to participate in the for pay program? Milliseconds? And how long after that will it be before those who do provide content complain that they aren't getting the same level of promotion as others and that YouTube has gone corporate? Instantaneously?

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