[Asia Economy Reporter Cho Hyun-ui] YouTube has abandoned its attempt to create original programs after six years. It has effectively given up competing with Netflix.
According to the Wall Street Journal (WSJ) on the 18th (local time), Robert Kyncl, YouTube's Chief Business Officer (CBO), announced in a statement that "Susan Daniels, who was the head of YouTube Originals, will leave the company this coming March."
YouTube will maintain only some services such as those for children in terms of original programs, while increasing investment in the short video service "YouTube Shorts." To support this, YouTube established a $100 million (approximately 119.2 billion KRW) fund last year to support popular Shorts creators.
The WSJ said, "This decision is an attempt to diversify the business beyond digital advertising, which accounts for 80% of total revenue, by investing heavily to find new products."
In 2016, YouTube launched YouTube Originals after Netflix significantly increased subscribers with original series like "The Crown." However, most series except for "Cobra Kai" failed to attract much attention. YouTube Premium is now better known as a service that allows users to watch YouTube without ads.
Kyncl, YouTube's CBO, stated, "YouTube will expand investments in YouTube Shorts, a short video app rivaling TikTok, as well as in live shopping."
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