Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) video streaming unit YouTube cut the bulk of its investment towards original programming.
What Happened: Robert Kyncl, YouTube’s chief business officer, said on Twitter Tuesday that the programming slate of the YouTube Originals division will be reduced.
An update on YouTube Originals: pic.twitter.com/PixhgZ2yhU
— Robert Kyncl (@rkyncl) January 18, 2022
The division is dedicated to the creation of new programming and is headed by the industry veteran Susanne Daniels, who joined YouTube in 2015.
YouTube will now focus on “new opportunities” such as its Creator Shorts Fund, Black Voices Fund, and Live Shopping programming, according to Kyncl.
Shorts is a rival to the ByteDance-owned short-form video app TikTok.
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Why It Matters: Kyncl said that Daniels has decided to leave YouTube, effective March 1. He acknowledged that she and her team played “an integral role in growing the YouTube community."
Daniels commissioned hit series like “Cobra Kai,” which moved to the rival Netflix Inc’s (NASDAQ:NFLX) platform.
The YouTube executive has been looking for other jobs for the last couple of years, according to a Bloomberg report.
Going forward YouTube will be only funding programs that are part of its Black Voices and YouTube Kids funds but will honor already contracted shows in progress.
Price Action: On Tuesday, Alphabet Class A and Class C shares closed 2.5% lower at $2,719.96 and $2,725.81 respectively.
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