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

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Is anyone prepared to solve the NHS funding crisis?

As long as the political taboo on raising taxes endures, the service will be in financial peril. 

It has long been clear that the NHS is in financial ill-health. But today's figures, conveniently delayed until after the Conservative conference, are still stunningly bad. The service ran a deficit of £930m between April and June (greater than the £820m recorded for the whole of the 2014/15 financial year) and is on course for a shortfall of at least £2bn this year - its worst position for a generation. 

Though often described as having been shielded from austerity, owing to its ring-fenced budget, the NHS is enduring the toughest spending settlement in its history. Since 1950, health spending has grown at an average annual rate of 4 per cent, but over the last parliament it rose by just 0.5 per cent. An ageing population, rising treatment costs and the social care crisis all mean that the NHS has to run merely to stand still. The Tories have pledged to provide £10bn more for the service but this still leaves £20bn of efficiency savings required. 

Speculation is now turning to whether George Osborne will provide an emergency injection of funds in the Autumn Statement on 25 November. But the long-term question is whether anyone is prepared to offer a sustainable solution to the crisis. Health experts argue that only a rise in general taxation (income tax, VAT, national insurance), patient charges or a hypothecated "health tax" will secure the future of a universal, high-quality service. But the political taboo against increasing taxes on all but the richest means no politician has ventured into this territory. Shadow health secretary Heidi Alexander has today called for the government to "find money urgently to get through the coming winter months". But the bigger question is whether, under Jeremy Corbyn, Labour is prepared to go beyond sticking-plaster solutions. 

George Eaton is political editor of the New Statesman.