The challenge to turn to YouTube into a profitable business

The challenge to turn to YouTube into a profitable business

Susan Wojcicki occupies a special place in the history of the technological industry, also a starring paper in the future of means and the entertainment plays.

In September of 1998, Larry Page and Sergey Brin rented to three dormitories and the garage of the house of Wojcicki near this city, the same month in which they incorporated Google. A year later, the co-founders of the giant of the technology contracted it. Soon, Wojcicki sent the incipient business of publicity of Google, that was transformed into one of more formidable the machines to make money in history of the commerce. Also it exhorted to the company, that today comprises of the Alphabet conglomerate, that bought YouTube in 2006.

Now, as executive president of YouTube, its task is to turn the site of videos into a business. YouTube counts with more than 1,000 million users, but their gains are minimum or null. Wojcicki, of 47 years, spearheads several important initiatives oriented to cause that the platform of videos is profitable, including an offensive in the business of the virtual reality, live programming and a service of subscription of 10 dollars to the month sent in October.

YouTube in line continues being a dominant force in the segment of videos, when accumulating more than 180 million unique visitors in traditional computers in February, compared with around 81 million of Facebook, the second service of videos, according to the signature of investigation of market comScore. The numbers do not include movable devices, that represent the majority of the visits YouTube.

However, in a while in that Facebook accelerates its incursion in the videos, the domain of YouTube is to be guaranteed. The users on Facebook pass an average of 50 minutes daily, compared with 17 minutes in YouTube, according to comScore.

Snapchat and Twitter, that acquired the rights to transmit the Olympic Games and the parties of the league of american football, also penetrate in the videos. As well, Netflix and Amazon are catching more phelp to their services destreaming of videos. In case this outside little, several cable channels in the United States allow that their users accede to their content from any device.

Anyway, Wojcicki says that its competing major is the traditional television and wants that their thousands of million viewers accede to content in the Web. Nevertheless, she even admits that almost half of the times skips the announcements that appear before each video of YouTube and which in the end they are the main generators of money of the service.

In a recent interview, Wojcicki, sister of Anne Wojcicki, executive president of the company of genetic diagnosis 23andMe, talked on the strategy of YouTube, the rivals and the culture. Next we presented published fragments of the dialogue.

WSJ: How it would describe his mandate?

Wojcicki: I see an opportunity to re-invent the television. When I the future contemplate of the television fodder that will be to the letter. It includes access from movable equipment and through multiple devices. He will be global and include a diverse content. The goal of YouTube is to construct to that platform and to be the generator of content and the supplier of television of next generation.

WSJ: YouTube has more than billions of visits, but almost no gain. How it solves that problem?

Wojcicki: At the moment, we are in a growth stage. We are thinking about how obtaining next the billions of users and looking for additional ways of minting. We are led in establishing the bases for the business of long more successful term. We are reinverting in the company to arrive at the users and to offer more options of minting and a better service.

WSJ: Then, the gains is a priority nowadays?

Wojcicki: The growth is the priority.

WSJ: Who is its competing major?

Wojcicki: Snapchat, Facebook, Netflix. In a certain sense, our main rival is the traditional way to watch. It is a so great space with so many opportunities for all. We must lead to think to us about how to give our main proposals of better form to our users, instead of saying good, if company X does this, I also must it do.

WSJ: The advertisers have delayed more than the people in welcoming the video in line. Why?

Wojcicki: The users can make relatively fast decisions and nothing costs to them to make a change in its habits of consumption of videos. But he is an advertiser, must make sure that it works. The advertisers often begin little by little and they prove it. It does not have sense them to place publicity in a place where there are no users, truth? I trust that the companies will follow the users and the dollars of the publicity will stop to average digitalises. But it is going to delay a little.

WSJ: What says on the humanity the habits to him of the people who look at videos in line?

Wojcicki: The people much more are interested in ordinary people and current than we would have thought. That was the idea that took me to the purchase of YouTube. Before, we thought that only they wanted to see well finished professional contents and, but in fact want to see all class of contents. There is a very human element in YouTube, where the people connect themselves with other people.

WSJ: You and its husband, another executive of Google, often to reach to arrive at the house at the time of dinner with its children. To the readers he will interest to know to them how they obtain it.

Wojcicki: First it is to assure to me that my working life is manageable. In my case, I must establish priorities and identify the tasks most important to do. Then, I must say ‘I finished’ at the end of the day and power going me for my house without having to think at work. We try to impose a rule of in the afternoon not reviewing our e-mails between the six and the nine at night. If you are with the telephone, it costs more to become disconnected.

Also I pass me remembering to him to the people who the success does not depend on the number of hours that one works. The risk investors do not ask: ‘How many hours he glides to work’ What yes they ask is: ‘How much know do you of this? What is what is going to bring to the table’ If you go working 24 hours the 7 days of the week, she is not going to have any interesting idea. The separation between the life and the work is really important for the productivity, efficient being at work and simultaneously to be present when one is in the house.