YouTube/Screenshot
- YouTube wants to lock up some of its top stars, and perhaps keep them from spending too much time with Instagram's new longform-video app IGTV.
- The Alphabet-owned company is dangling five and six-figure payouts to its biggest creators in an effort to ensure that they to continue post their best content on YouTube first.
- YouTube says this is nothing new, and that it has long rewarded select talent in this way.
- YouTube has faced competition before, of course, but IGTV would seem to have a much better shot at making YouTube sweat, given that the core Instagram app offers a promotional platform which boasts of 500 million daily active users.
YouTube is flashing the cash to keep its big names happy. And some
The Alphabet-owned video platform has been dangling sizable checks to several of its top stars - like the hugely popular comedian Lilly Singh - to keep them distributing their best stuff on YouTube, according to people familiar with the matter.
The potential checks typically range from five to six figures, they said. One person said these deals could hit seven figures, though another said this only happened in very rare cases.
Some of these deals are still in talking stages, but the idea is that YouTube would like its big stars to post videos first on YouTube, or at least at the same time they distribute them anywhere else.
"Contracts have yet to be delivered, but this is about guaranteed money for 'concurrent' posting," said one Hollywood source. "It's a case by case basis."
It's not clear how many creators have been involved in these talks, but it's not believed to be widespread.
However, the fact that these conversations are happening now would seem to speak to how seriously YouTube is taking the threat of IGTV, which has already featured content ranging from CNN to Bethany Frankel to big YouTube names like the comedy troupe, Smosh.
And YouTube is not the only platform out there talking to influencers about guaranteed money for exclusive distribution windows, said several sources. "There is an all out talent war going on," said an executive who works with influencer talent.
YouTube says this is nothing new, and that it has long rewarded select talent in this way.
"We have no new initiative in place," said a YouTube spokesperson. "We have always invested in our creators' success and will continue to do so to ensure they have a great experience and can find continued growth and opportunity on YouTube."
To be sure, the company has periodically funneled cash to top talent over the years. For instance, YouTube will sometimes look to incentivize its big stars to try out newer features such as its new live streaming communications tool Super Chat as well as emerging channel memberships, hoping they'll spur other influencers to start using them.
The overall goal is to have talent and viewers spend more time on YouTube, and less time somewhere else.
"Every creator has to ask themselves: How and where do I focus?" said one agent. "There are a lot of platforms and it's hard to master them all. They want YouTube to be their primary home."
Several web video executives said this round of potential deals is very similar to a strategy employed by YouTube a few years ago when the venture-backed startup Vessel was trying to launch a subscription web video service.
Back in 2014 Vessel, led by former Hulu CEO Jason Kilar, attempted to sign up multiple YouTubers to either produce exclusive content or premiere videos on Vessel for a period of time before they hit YouTube.
At that time, YouTube reacted by handing out bonuses to big stars. Vessel struggled to gain any momentum, before eventually selling to Verizon.
In this case, IGTV would seem to have a much better shot at making YouTube sweat, given that the core Instagram app offers a promotional platform which boasts of 500 million daily active users.