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YouTube –
product strategy 2016-2020
Tony Prianichnikov
Disruptive change in TV-industry is coming - big bang of channel
expansion and further audience fragmentation is underway
2
US TV-landscape evolution
Netflix
Cinemax
Starz
Showtime
HBO
Fox
CBS
ABC
NBC
CBS
ABC
NBC
Disney Channel
Cinemax
Starz
Showtime
HBO
Fox
CBS
ABC
NBC
Hulu
Amazon Video
Youtube
Xfinity
New TV era
Online video streamingBig Three television networks
Rise of premium cable networks
1950-1990
3 major premium channels
1990-2005
Hundreds of premium
channels
2005-2015
Hundreds of channels +
video streaming
2015-
Tens of thousands of Web-
based channels
YouTube shortcomings due to insufficient content quality – web streaming
traffic share drop from 19% in 2013 to just 14% in 2014; average CPM far
below market; length of programming block less than average in 7 times
3
Netflix
14,0%
34,5%
YouTube
19,0%
Websites
8,5%
Facebook
3,5%
BitTorrent
3,2%
iTunes
3,0%
Music
2,7%
Amazon Video
2,5%
-5,0%
2013
2014
27,5
24,5
7,6
Hulu
TV average
YouTube
North America web streaming
traffic, percentage share
Average CPM, $
22,0
3,0
TV average
YouTube
Average length of programming block,
minutes
YouTube has amazing opportunity to profit from adding premium
content based on subscription model; customers are ready to pay
for it
4
7,5
15,0
279,0
YouTube mobile
YouTube overall
TV
USA active customer base,
millions of people
Average time spent,
minutes per day
57,4
9,0Hulu Plus
Netflix
Paying customers for subscription-based
premium content, millions of people
54,4
39,0
115,5YouTube
Cable networks
combined
Netflix
Facts
8 of 10 Americans have used tech
to watch TV-shows on their own
schedule
6 of 10 most-viewed YouTube
videos were scripted and produced
like TV-shows
75-80% of video views on Netflix
come from recommendation not
search
YouTube new product features in 2020 (from the most important) –
Part 1
5
№ New feature Description
1
Manual channels programming Main idea - user will be able to program his/her own video consuming by combining
premium subscription-based, premium ads supported and user generated ads supported
channels.
Channel programming – there are tens of thousands available channels, both premium
and user generated. I as a user am able to create my own schedule based on day of
week, my work intensity, mood, genres preference etc. This schedule will be automatically
calculated into my monthly subscription fee and / or my confirmation to view commercials.
User profiles – user is able to create up to five different profiles, both for family members
as well as for different use cases for himself (“Perfect mom”, “Sports frenzy”, “In romantic
relations” etc.) There are a lot of preconfigured combinations of channels packages -
profiles also. Kid profile is automatically preinstalled.
Playback – everywhere, on every device (TV, laptop, tablet, smartphone, game console,
set-top box), simultaneous playback for each profile. Starts automatically according to
user’s current channel schedule on active device.
Channels categories:
•  TV shows
•  News (including Live)
•  Music
•  Sports (Live, Condensed, Recap, Archive – all major leagues)
•  Gaming
•  Movies
•  Business
•  Kids
•  DIY & Hobby
•  Beauty & Fitness & Lifestyles
•  Education & Science
•  Adult
•  Shopping & Reviews
7:00	
  AM Music Wake-­‐up	
  playlist
8:00	
  AM S ports
NHL	
  &	
  NBA	
  matches	
  
reviews
1:00	
  P M Business
S tocks	
  by	
  Barclays	
  
C apitals	
  channel
6:00	
  P M TV	
  shows
C omedy	
  C entral	
  
channel	
  new	
  videos
7:00	
  P M News Live;	
  without	
  politics
7:30	
  P M TV	
  shows Genre	
  -­‐	
  C riminal
9:00	
  P M S ports
Live	
  NHL	
  or	
  NBA	
  -­‐	
  
P ittsburgh	
  P enguins	
  
or	
  C hicago	
  Bulls	
  only
8:00	
  AM
Beauty	
  &	
  
F itness	
  &	
  
Lifestyles
Y oga	
  with	
  Tara	
  S tiles	
  
channel
9:00	
  AM K ids
F unToyzC ollector	
  or	
  
K ittiesMama	
  channel
11:30	
  AM DIY 	
  &	
  Hobby
C ooking	
  with	
  Jamie	
  
Oliver	
  channel
3:00	
  P M TV	
  shows
Downton	
  Abbey	
  -­‐	
  
watch	
  again
5:00	
  P M
E dutation	
  &	
  
S cience
MinuteP hysics	
  
channel
8:00	
  P M TV	
  shows S uits	
  -­‐	
  new	
  episode
Tony's	
  channel	
  -­‐	
  regular	
  working	
  day
Nina's	
  channel	
  -­‐	
  perfect	
  mom
YouTube new product features in 2020 (from the most important) –
Part 2
6
№ New feature Description
2
Recommendation service
Main idea – user will get infinite queue of video content based on his/her taste
preferences, ratings, viewing history that will be put into recommendation algorithm to find
a relevant content.
Data structure – our goal is to create a set of dimensions that fully characterize unit of
video content as well as use cases of consuming it, including:
•  Genres (e.g. Action & Adventure, Sci-Fi & Fantasy, Children & Family)
•  Subgenres (e.g. Action Thrillers, Adventures, Westerns, Asian Action, Martial Arts
Movies)
•  Moods (e.g. Cerebral, Controversial, Emotional, Exciting, Romantic, Scary)
•  Qualities (e.g. Oscar Winners, Classics, Critically-acclaimed, Visually striking)
•  Storylines (e.g. College, Crime, IT & Computers, Conspiracies, Myths & Legends)
•  Story source (e.g. Based on real life, Based on a Book, Biographical, Based on a Video
Game)
•  Children’s age (e.g. Ages 0 to 2, Ages 2 to 4, Ages 5 to 7, Ages 8 to 10, Ages 11 to 12,
Teen)
•  Release date (e.g. 1990s, 2000s)
«Rate me» – user’s ability to rate (1-5 digits scale, Haven’t Seen It) every piece of content
including content that is not available to stream at the moment based on user’s past
viewing experience. Additionally, every bit of user’s activity or non-activity on YouTube has
to automatically rated also.
Algorithm – some kind of machine learning techniques (have to be evaluated).
YouTube new product features in 2020 (from the most important) –
Part 3
7
№ New feature Description
3
YouTube Android App
UI/UX changes and new features
Choose profile – our App will provide simultaneous playback for different profiles on all
connected devices
Coming Next Queue – infinite queue of titles structured according to user’s active channel
schedule. User can replace categories’ positions, reorder, delete titles on particular
category. Every time when user swipe right to the left end reach the end of the queue new
title has to be automatically added on the right side of the queue. New title is adding in
result of Algorithm calculations.
Title info – provide title description, TV-rating (e.g. PG-13), video length, starring, director,
additional information about the video title
Start watching – launching playback mode from title info. Playback mode on a schedule
starts automatically.
Free ride mode – ability to skip a channel and play any available video title.
Offline mode – ability to request offline mode for up to 2 hours. In this case upcoming
video content on your channel’s schedule are downloading to your device. Available for
non-live video only.
Rating mode – adds five stars onto your titles (plus Haven’t seen it button) and gives an
ability to rate video title from 1 star (worst) to 5 stars (best).

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YouTube product strategy 2016-2020

  • 1. YouTube – product strategy 2016-2020 Tony Prianichnikov
  • 2. Disruptive change in TV-industry is coming - big bang of channel expansion and further audience fragmentation is underway 2 US TV-landscape evolution Netflix Cinemax Starz Showtime HBO Fox CBS ABC NBC CBS ABC NBC Disney Channel Cinemax Starz Showtime HBO Fox CBS ABC NBC Hulu Amazon Video Youtube Xfinity New TV era Online video streamingBig Three television networks Rise of premium cable networks 1950-1990 3 major premium channels 1990-2005 Hundreds of premium channels 2005-2015 Hundreds of channels + video streaming 2015- Tens of thousands of Web- based channels
  • 3. YouTube shortcomings due to insufficient content quality – web streaming traffic share drop from 19% in 2013 to just 14% in 2014; average CPM far below market; length of programming block less than average in 7 times 3 Netflix 14,0% 34,5% YouTube 19,0% Websites 8,5% Facebook 3,5% BitTorrent 3,2% iTunes 3,0% Music 2,7% Amazon Video 2,5% -5,0% 2013 2014 27,5 24,5 7,6 Hulu TV average YouTube North America web streaming traffic, percentage share Average CPM, $ 22,0 3,0 TV average YouTube Average length of programming block, minutes
  • 4. YouTube has amazing opportunity to profit from adding premium content based on subscription model; customers are ready to pay for it 4 7,5 15,0 279,0 YouTube mobile YouTube overall TV USA active customer base, millions of people Average time spent, minutes per day 57,4 9,0Hulu Plus Netflix Paying customers for subscription-based premium content, millions of people 54,4 39,0 115,5YouTube Cable networks combined Netflix Facts 8 of 10 Americans have used tech to watch TV-shows on their own schedule 6 of 10 most-viewed YouTube videos were scripted and produced like TV-shows 75-80% of video views on Netflix come from recommendation not search
  • 5. YouTube new product features in 2020 (from the most important) – Part 1 5 № New feature Description 1 Manual channels programming Main idea - user will be able to program his/her own video consuming by combining premium subscription-based, premium ads supported and user generated ads supported channels. Channel programming – there are tens of thousands available channels, both premium and user generated. I as a user am able to create my own schedule based on day of week, my work intensity, mood, genres preference etc. This schedule will be automatically calculated into my monthly subscription fee and / or my confirmation to view commercials. User profiles – user is able to create up to five different profiles, both for family members as well as for different use cases for himself (“Perfect mom”, “Sports frenzy”, “In romantic relations” etc.) There are a lot of preconfigured combinations of channels packages - profiles also. Kid profile is automatically preinstalled. Playback – everywhere, on every device (TV, laptop, tablet, smartphone, game console, set-top box), simultaneous playback for each profile. Starts automatically according to user’s current channel schedule on active device. Channels categories: •  TV shows •  News (including Live) •  Music •  Sports (Live, Condensed, Recap, Archive – all major leagues) •  Gaming •  Movies •  Business •  Kids •  DIY & Hobby •  Beauty & Fitness & Lifestyles •  Education & Science •  Adult •  Shopping & Reviews 7:00  AM Music Wake-­‐up  playlist 8:00  AM S ports NHL  &  NBA  matches   reviews 1:00  P M Business S tocks  by  Barclays   C apitals  channel 6:00  P M TV  shows C omedy  C entral   channel  new  videos 7:00  P M News Live;  without  politics 7:30  P M TV  shows Genre  -­‐  C riminal 9:00  P M S ports Live  NHL  or  NBA  -­‐   P ittsburgh  P enguins   or  C hicago  Bulls  only 8:00  AM Beauty  &   F itness  &   Lifestyles Y oga  with  Tara  S tiles   channel 9:00  AM K ids F unToyzC ollector  or   K ittiesMama  channel 11:30  AM DIY  &  Hobby C ooking  with  Jamie   Oliver  channel 3:00  P M TV  shows Downton  Abbey  -­‐   watch  again 5:00  P M E dutation  &   S cience MinuteP hysics   channel 8:00  P M TV  shows S uits  -­‐  new  episode Tony's  channel  -­‐  regular  working  day Nina's  channel  -­‐  perfect  mom
  • 6. YouTube new product features in 2020 (from the most important) – Part 2 6 № New feature Description 2 Recommendation service Main idea – user will get infinite queue of video content based on his/her taste preferences, ratings, viewing history that will be put into recommendation algorithm to find a relevant content. Data structure – our goal is to create a set of dimensions that fully characterize unit of video content as well as use cases of consuming it, including: •  Genres (e.g. Action & Adventure, Sci-Fi & Fantasy, Children & Family) •  Subgenres (e.g. Action Thrillers, Adventures, Westerns, Asian Action, Martial Arts Movies) •  Moods (e.g. Cerebral, Controversial, Emotional, Exciting, Romantic, Scary) •  Qualities (e.g. Oscar Winners, Classics, Critically-acclaimed, Visually striking) •  Storylines (e.g. College, Crime, IT & Computers, Conspiracies, Myths & Legends) •  Story source (e.g. Based on real life, Based on a Book, Biographical, Based on a Video Game) •  Children’s age (e.g. Ages 0 to 2, Ages 2 to 4, Ages 5 to 7, Ages 8 to 10, Ages 11 to 12, Teen) •  Release date (e.g. 1990s, 2000s) «Rate me» – user’s ability to rate (1-5 digits scale, Haven’t Seen It) every piece of content including content that is not available to stream at the moment based on user’s past viewing experience. Additionally, every bit of user’s activity or non-activity on YouTube has to automatically rated also. Algorithm – some kind of machine learning techniques (have to be evaluated).
  • 7. YouTube new product features in 2020 (from the most important) – Part 3 7 № New feature Description 3 YouTube Android App UI/UX changes and new features Choose profile – our App will provide simultaneous playback for different profiles on all connected devices Coming Next Queue – infinite queue of titles structured according to user’s active channel schedule. User can replace categories’ positions, reorder, delete titles on particular category. Every time when user swipe right to the left end reach the end of the queue new title has to be automatically added on the right side of the queue. New title is adding in result of Algorithm calculations. Title info – provide title description, TV-rating (e.g. PG-13), video length, starring, director, additional information about the video title Start watching – launching playback mode from title info. Playback mode on a schedule starts automatically. Free ride mode – ability to skip a channel and play any available video title. Offline mode – ability to request offline mode for up to 2 hours. In this case upcoming video content on your channel’s schedule are downloading to your device. Available for non-live video only. Rating mode – adds five stars onto your titles (plus Haven’t seen it button) and gives an ability to rate video title from 1 star (worst) to 5 stars (best).