By going pro, YouTube risks alienating its amateur core

YouTube has bigger fish to fry.

No longer is YouTube just about viral memes and videos of people hurting themselves. The business model of online video is evolving and so too are the site’s priorities.

In October 2011, YouTube embarked on a campaign to attract more professional-grade content to the site, dolling out over $150million in cash advances to professional video creators offering slicker material with higher production value.

With this has come an influx of celebrity. Global superstars Madonna, Ashton Kutcher and Jaz-Z have all been drafted in to host YouTube channels, whilst Hollywood stalwart Tom Hanks is currently working on his own YouTube project.

However, such sweeping changes have left one group out in the cold: the legions of amateur video producers who helped transform the site into the entertainment colossus it is today.

YouTube has made several changes throughout the year that have pulled the rug from underneath the feet of its amateur core. One such change involved forcing users into adopting a more streamlined layout on their channels by slashing the number of customisation options available to them.

Tensions climaxed earlier this year when YouTube made significant changes to the algorithm used to decide how clips were recommended to viewers. Thousands of amateur producers protested that the move favoured longer, more professionally-produced material uploaded by high-profile channels, relegating their own content to the YouTube wilderness. 

Unfortunately for these users, these moves are symptomatic of a site maturing in line with digital entertainment’s changing ecosystem. In the US market, the projected revenue from digital advertising is expected to balloon from $2.4 billion this year to a whopping $7.1 billion in 2015, when 40% of the US are predicted to regularly watch TV online, according to e-marketer.

Such game-changing statistics demand an improvement in the service YouTube offers. With the rise of digital streaming services such as Netflix and an increasing number of users opening Vimeo accounts, YouTube needs to remain competitive. Ultimately, the sweeping transformation from user-generated content to professional programming could even aid the site in its quest to become the next-generation TV provider.

“Our big advertisers like the path that YouTube has taken”, says Andy Chapman, head of digital investment at Mindshare, a prominent American advertising agency.

“A number of clients say this looks and feels like the direction the market is going”

But in adapting to the evolving landscape of the video entertainment industry, YouTube runs the risk of alienating the creative, entrepreneurial lifeblood that fostered its rise. The site is seemingly forgetting its roots, but that’s business I guess.

Photo: Reuters

Alex Ward is a London-based freelance journalist who has previously worked for the Times & the Press Association. Twitter: @alexward3000

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.