The move is one of many that YT has made in recent months to generate more advertising revenue on content that corporations are more likely to feel comfortable in using, compared to the edgier user-generated content. In a different deal, YouTube has partnered with Universal Music to create a music video site called Vevo. (more)
Analysis: YouTube is copying the business strategy of the popular Hulu, a joint venture of NBC Universal and FOX. Hulu has TV shows and movies, but no user-generated content. I think Hulu is fantastic, and thought so when it first came out. But now it appears to becoming the “YouTube killer” that it was first touted to be.
It will be very interesting to see if YouTube focuses even less on user-generated content in the future. And whether YouTubers revolt. It may be that the fascination with amateur videos has died down (along with the number of brilliant UGC videos or new talent). If so, YouTube does not to be sustaining its business somehow, in order to subsidize all the millions of amateur videos stored on YT servers.