Please ensure Javascript is enabled for purposes of website accessibility

Google Wants to Be a Star

By Rick Munarriz – Updated Apr 6, 2017 at 9:51AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

YouTube may be looking to acquire video content.

Content has never been king at Google (Nasdaq: GOOG) -- and that's a good thing.

Big G would rather sell you a map to the stars -- a good one, perpetually updated -- than hang out in the mansion itself dodging tour buses loaded with shutterbugs.

However, just as the blogosphere is blowing up over Google giving preferential treatment to its own user-submitted restaurant reviews or Google Health service over more seasoned publishers, a conflict of interest may be about to brew at YouTube.

The New York Times reported yesterday that YouTube is in talks to acquire Next New Networks, a producer of original video content. If you've ever seen a Barely Political or Indy Mogul clip on YouTube, that's Next New's handiwork. As a producer, it has inked deals with dozens of indie video makers that are typically among the most subscribed-to channels on YouTube.

On the surface, it seems like a great plan. If YouTube is able to lock up its more magnetic properties -- while at the same time perhaps keeping the content off of rival video-sharing websites -- it's a win all around.

The challenge here will be convincing everybody else. YouTube's community may see this as a conflict of interest, especially if YouTube begins featuring its owned content over the majority of uploads. Yes, this could be the exact same problem being experienced at Google.com itself, with third-party publishers complaining that Big G is funneling traffic toward its own properties.

YouTube's popularity has stemmed largely from its user-generated nature. Hulu -- the site bankrolled by General Electric's NBC Universal, Disney, and News Corp. -- doesn't even offer users the ability to upload clips. It is strictly a one-way experience. Youku.com (Nasdaq: YOKU) -- the recently public video site that is considered by some to be China's YouTube -- relies mostly on licensed studio content.

There are plenty of smaller sites that are true video-sharing sites, and the last thing that Google wants is for the community to move on to one of those destinations that may be perceived as fairer hubs of democratized content if YouTube begins gobbling up content.

The mansion's nice, Google -- but think of the tour bus.

Should YouTube be acquiring content or remain on the sidelines? Share your thoughts in the comment box below.

Walt Disney and Google are Motley Fool Inside Value picks. Google is a Motley Fool Rule Breakers choice. Walt Disney is a Motley Fool Stock Advisor selection. The Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$98.74 (-1.40%) $-1.40

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.