Google spending $100 million on TV quality shows for YouTube, coming 2012

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We’ve been hearing more and more lately about Google’s intention to land Hollywood and TV quality content on YouTube. Today we get a little bit more insight into their plans with WSJ reporting GOOG is in negotiations with media companies and celebrity personalities to hand out more than $100 million to fund the production of original content.

Slated to make an appearance in early 2012, the content will reportedly debut on “dozens of free channels with professional-grade shows”. While this step into producing original content might come as a surprise to some, the way Google intends on recouping their investment will not:

“YouTube, the world’s largest video site, is putting up more than $100 million in cash advances to get some of the content produced, said the people. YouTube will recoup the funds from advertising revenue it sells against the content, later splitting ad revenue with the partners, these people said. YouTube hopes the new channels, which are expected to roll out sometime next year, will draw in big money from advertisers, they said.”

One of the celebrities said to be in talks with Google is Tony Hawk, although the report mentions mostly media companies including Warner Bros., ShineReveille (The Office, Ugly Betty), Anthony Zuiker (creator of CSI), and FermantleMedia Ltd. (The Price is Right, The X Factor). Some of the other companies mentioned in the report produce shows for VH1, Discovery, HGTV, and more.

This all comes a day after Apple was rumored to be working on a “Video On Demand” app which will reportedly compete with DirecTV.

One thing is for sure, this is no longer your father’s (or your older brothers) TV market. YouTube continues to legitimize itself as a competent competitor to the likes of Hulu and other mainstream channels. Netflix, despite the catastrophe that was splitting the company into two halves, has been on this train for awhile. It’s difficult to say who will be the leader in the long run, but it should be exciting to see how everything plays out–just as long as we get Charlie’s Angels, be it streaming on the internet, replaying on the DVR or live via an old-fashioned Cable Box, we’ll be happy.

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