Hollywood Entertainment is Google’s Next Multibillion Market

September 17, 2011
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Google is planning to overhaul YouTube and gear it up for the emergence of Internet television. The Wall Street Journal reported last April that the company is spending around a hundred million dollars to commission premium Hollywood content which will then be shown on certain specialized channels in the video sharing site.

The report further states that the search giant is currently in the process of forming partnerships with groups such as Creative Artists Agency, International Creative Management, and William Morris Endeavor.

Here is financial and research firm William Blair & Company’s take on the matter. With annual revenue of $9.4 billion, services and products like Android, Chrome and YouTube, and status as the biggest advertising platform today, Google definitely has the capital and technology to become a big player in the premium-content arena.

The research firm makes a rough estimate that the market will be worth $65 billion – $35 billion from typical DVD/Blu-ray packaged content, $15 billion from mobile content, and another $15 billion from over-the-top videos.

Google of course will be facing tough competition from the likes of Apple, Amazon, Netflix and Hulu. Such companies have entered the premium-content industry earlier and staked out their own domains but Google may have a few aces up its sleeve. One of them would be the set-top-box business of its latest acquisition Motorola Mobility.

This potentially gives Google the capability to create a Hollywood entertainment platform that delivers content straight up from the production studio to the end-user’s Android mobile device. Watch out for a grand launch of Google TV 2.0 pretty soon.

Via 9to5Google

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