According to inside sources, Google is planning to compete with television providers by creating channels designed around topics like sports and the arts. They might spend $100 million on content designed for the web on 20 or so channels.
For it’s part, YouTube is neither confirming or denying these reports. “YouTube saw incredible growth in 2010 and we’re excited about the future,” said a YouTube spokesman.
The goals are to phase the channels in over time and to launch the first of them by the end of 2011. They want to increase the time that users spend on the site up from 15 minutes a day and to start generating enough ad revenue to finally become profitable.
Source: Wall Street Journal