YouTube Buys Video Producer Next New Networks

YouTube.JPGYouTube has bought Next New Networks, the company behind two of YouTube’s top videos of 2010 (“Bed Intruder” and “Glitter Puke”). YouTube also announced plans for YouTube Next, a new effort aimed at helping content partners monetize their videos and improve quality through grants and training.

Founded in 2006 and launched in March 2007, Next New Networks received more than 1.2 billion video views in 2010. However, as we reported last month when rumors heated up for a second time, Next New Networks failed to see any meaningful revenue from advertising despite having more than 5 million subscribers.

Google yesterday reported Next New Networks had 2 billion views and more than 6 million subscribers.

We first heard about the rumored deal back in December after negotiations were leaked to the New York Times. The deal is worth less than $50 million, the NYTimes reported.

Co-founder Tim Shey will join Google, but co-founder Fred Seibert will step down.

Earlier this week, the San Jose Mercury News conducted a Q&A with YouTube CEO Salar Kamangar that gives some hints about YouTube’s future direction of organizing YouTube videos around niche channels rather than individual videos:

“When you think about the impact cable had, we think we’re in a position to have a similar impact for video delivery, like what cable has done with broadcast. In the early ’80s, you had three or four networks. Now those three or four networks are responsible for 25 percent of viewership, and the cable networks are responsible for all the rest. Right now, the fraction of traffic that is Web video is small relative to broadcast and cable, but it’s growing at a fast rate. What’s amazing is that the Web enables you to build a kind of channel that wouldn’t have made sense for cable, in the same way cable enabled you to build content that wouldn’t have made sense for broadcast. You couldn’t have done CNN with the broadcast networks; you couldn’t have done MTV with the broadcast networks.”

In other news, YouTube has added Alex Carloss, former head of digital distribution at Viacom’s Paramount, to its content acquisition team, All Things Digital reported.

Google’s 2011 Acquisitions

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