Google to spend $100 mn to overhaul YouTube

BANGALORE, INDIA: YouTube, the popular video sharing website from Internet search giant Google is going for a major overhaul as it tries to position itself for the rise of televisions that let people watch online video in their living rooms.

Citing some people familiar with the matter, The Wall Street Journal reported that YouTube is looking to compete with broadcast and cable television, a goal that requires it to entice users to stay on the website longer, and to convince advertisers that it will reach desirable consumers.

Sources told WSJ that Google is is planning to spend as much as $100 million to commission low-cost content designed exclusively for the Web and plans to create 20 special channels on YouTube.

Last month YouTube bought Green Parrot Pictures, whose video software has been used in several Hollywood blockbusters, in an effort to improve the quality of some of its videos further by using the Green Parrot technology.

The site is planning a series of changes to its home page to highlight sets of these "channels" around topics such as arts and sports. Those channels will feature several hours of professionally produced original programming a week, the report added.

Following paths of Netflix?

As per the report, Google plans to follow the paths of Netflix, which announced last month its own streaming video programs. It was in 2006 that Google bought YouTube for $1.6 billion.