Mr. Kamangar gave the example of online videos that show dogs
riding skateboards -- the types of videos that YouTube detractors
love to say are dominant on the site. He said the platform could
normally command about a $2 CPM for such a video. But if that same
video were to be packaged within the confines of one of the new
original-content channels on YouTube, adjacent to so-called premium
video content, prices would rise.
"That same video can command a $20 CPM," he said. "How you brand
and package matters."
Mr. Kamangar also left open the possibility for YouTube to
create a subscription service to help the company diversify its
current dependence on advertising. If or when YouTube creates a
subscription model, do not be surprised to see the company look to
second- or third-tier cable networks to start offering their
programming on YouTube on an a-la-carte basis.
"If we have a subscription model," Mr. Kamangar said, "then
absolutely that 's something that becomes possible."
In another onstage interview later in the day, Vevo CEO Rio
Caraeff said that his online music-video company was also exploring
the possibility of introducing a subscription model. Later in the
evening, he said that he expects the company to unveil a
subscription offering that complements its current advertising
revenue stream within a year, though the company still hasn't
decided on what exactly the offering will contain. He said the
2-year-old company, which is a joint venture between Sony Music Entertainment, Universal
Music Group and Abu Dhabi Media, brought in $150 million in revenue
in the past year. But is it profitable? an interviewer asked Mr.
Caraeff.
"We are making money, yes," he said.
