YouTube bows out of Hollywood arms race with Netflix, Amazon

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YouTube generated more than US$15 billion in ad sales last year without a huge slate of glitzy productions and concluded its money is better invested in music and gaming.

“In some ways, they never really went all-in on the strategy,” said Anthony DiClemente, an analyst at Evercore ISI. “That’s like bringing a butter knife to a gun fight.”

She was brought in to boost the volume and quality of YouTube’s original programming and is now looking to move on, according to people with knowledge of her thinking. Now, those efforts are more focused on programs like Kevin Hart’s “What the Fit,” with the comedian cheerleading in track pants. Apple will announce its first slate of original series on Monday, and analysts are already asking if the company has the stomach for Hollywood.

Daniels’s arrival signalled a new approach. She joined YouTube from MTV and previously ran television networks Lifetime and the WB, now known as the CW. At the WB, Daniels shepherded the hit shows “Buffy the Vampire Slayer” and “Dawson’s Creek.” The originals that will still exist on YouTube will now shift from the paid service to YouTube’s free version, where they will live alongside video blogs, makeup tutorials and toy “unboxing” videos.

 

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