I have a new piece today looking at how developers like Squrl and ShowYou are thinking about iOS now that it will arrive without a standalone video app. The new YouTube app may not be quite what consumers are looking for:
The Wall Street Journal reported that YouTube already recouped its initial investment with advertising revenue generated from the project. But the new channels have been slow to produce breakout stars. Many of the site's most-viewed channels rely on established stars and brands -- and fewer than 20 channels are doing even 1 million views a week, according to AdAge. (The most viewed videos of the week, by contrast, average at least 2 million views.)
That suggests users are more interested in finding the quirky viral hits that made YouTube famous than they are subscribing to the low-budget pop culture gabfests that have become the new channels' stock in trade. And if YouTube won't drive traffic to those viral videos through its own apps, someone else is happy to.