The days of watching MTV on the good old fashioned screen in their bedroom may be over for many youngsters, but this does not mean they do not watch any video content at all. The evolution of mobile technologies switched young viewers from the aging TV set to their smartphones and tablets. Traditional TV broadcasters are now taking a leap of faith and start investing in video networks that basically supply on demand services for viewers. One such example is RTL Group that is planning to invest the staggering amount of 107 million dollars in StyleHaul, one of the most popular fashion channels on YouTube.
Successful series provided by StyleHaul to fashion sensitive teenagers include The Crew and videos created by Zoella, a famous British fashion blogger. With 900 million monthly views on all their videos, StyleHaul is obviously a powerhouse on YouTube and they do not plan on slowing down anytime soon. To get the picture about what the new purchase will mean for RTL, the rest of the group’s online network amount to about 3 billion views, so getting StyleHaul to hop on board will seriously boost the already great viewer base they have.
And this is not all. RTL also plans to invest 20 million dollars in StyleHaul, just to expand it. Seeing that with a shareholding of 99.3% in StyleHaul, RTL practically becomes the owner, the only big question that remains is how the broadcaster is going to monetize on the millions of views they have.
While the prices for display ads on YouTube are rather low, StyleHaul alone is looking at tripling its profits in 2014, which means that RTL’s investment may just turn a nice profit.