So why is Google trying to overhaul the site, using “channels” filled with clips from professionals?
YouTube head Salar Kamangar has a bunch of answers for this question, but eventually you can get to the one that really matters: He thinks that making the site look more like traditional TV will convince marketers to pay traditional TV ad rates.
He explained the concept at D: Dive Into Media last month: “If you see a dog on a skateboard video, the CPMs, the cost per thousand impressions, are about $2. Now, if you package that [video] as part of a dog lover’s channel or a skateboarding interest channel, that same video can command a $20 CPM.”
YouTube is going to depend on advertising for most of its revenue, but Kamangar also discussed YouTube’s interest in offering subscription services down the road. Given that Kamangar, Google’s ninth employee, oversees all of the company’s video efforts, that’s worth keeping in mind as it edges closer to selling cable TV.