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As Google Dumps Millions Into Machinima, Will YouTube Forget The Little Guy?

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This article is more than 10 years old.

It's now official that in a new round of funding, gaming channel Machinima raised $35M from VC groups and Google itself. The flush of cash is huge for the brand, and they'll use it to create more original content and bolster that which they already produce. Machinima.com CEO Allen DeBevoise had this to say about the news.

“With this latest round of funding, Machinima is well-positioned to make the next evolutionary step in the world of multi-channel video programming and distribution by expanding into original content, international territories, and new platforms and devices. Our tremendous growth as one of the world’s largest online video communities, with innovative social metrics and attributes and massive mobile viewership, positions us well to lead the third wave of original video programming brands.”

He posits his company on the forefront of the next revolution in televised programming, except it's no longer on TVs, but the internet instead. He could be right, as this might be a step forward in YouTube attempting to shape itself into a digital cable-like company. A move away from traditional TV programming is not the worst thing in the world, as cable has been without competition and overpriced for eons, and YouTube is free, but with this deal comes certain questions.

With YouTube (through Google) now a direct investor in Machinima, they have more of a stake than ever to make sure its videos get views. That means Machinima videos plastered all over the homepage and recommended videos section. If this expands, and Google keeps investing in popular channels like this, we may see a "Google lineup" of channels similar to cable TV.

Why is this a bad thing? Isn't it great we're starting to move past traditional TV with steps like this? I suppose, but the corporatization of YouTube into promoted content from big, established brands leaves not a lot of room for the little guys. You know, the little guys who MADE YouTube in the first place with funny cat videos and failed Star Wars lightsaber fights?

Now, there will always be viral videos. The moment a kitten starts playing a Rick Astley song on the piano, that video is going to blow up no matter if its owned by a corporation or not.

But what of those intrepid YouTubers out there trying to get their own channels started, and assembling subscribers the natural way without millions in cash at their disposal? If every recommended video list is made up of these giant channels, it's going to be a lot harder for them to be discovered.

Machinima itself has been under fire by many gamers for a while. In many ways, they're positioned as "the only game in town" when it comes to gameplay videos, as unless you serve at their pleasure, you can often risk tangling with copyright lawyers over showing game footage in your videos. Recently, there have been a few tearful goodbyes of gamer channel hosts, popular ones at that, leaving Machinima because of their policies. BrainDeadly, Hutch and Athene are a few that are bailing on the brand and taking most of their viewers with them. Here's YouTuber HuskyStarcraft explaining the issues many of Machinima's partners (or potential partners) have with the brand in a statement he posted after BrainDeadly's departure:

"I have a YouTube channel with 600,000 subscribers and it is so frustrating to see things like this.

I was approached by Machinima a couple years ago with them looking to get me to join. At the time I had just finished schooling and, as a lot of people that age, wasn't sure what to do for a living. The timing of them approaching me was perfect as they told me I could make money on my channel. Thankfully I was lucky enough to have parents who actually knew their shit and they told me not to sign such a bad contract.

Because of my experience with them I decided to start TGS (The Game Station) instead. I believe I was one of the very first 'big' channels to tell them no. A special note to everyone telling them to 'read their contracts before signing', two things:

1) The Machinima contract has changed many times and I have friends in the network who had to sign ANOTHER contract even though they already had signed one. This tricks people into not realizing just how different they are.

2) A lot of the people in their network are very young and don't fully understand what the ramifications of such a bad contract mean. I would consider myself pretty well put together and even I contemplated going that route.

It's really sad that this keeps happening (this is the fifth or so video I've seen on this EXACT topic) but keep fighting the good fight. A couple of people who know what they're talking about have already contacted you about what the next steps should be."

As you can see, there are definitely issues with this corporate model, and Machinima is at least perceived at times to be taking advantage of young broadcasters who don't know any better. Granted, there are many satisfied Machinima partners, but gamers should not think that they should cave to the (now Google backed) corporate giant to distribute their content if it's ultimately not in their best interest.

I'm all for a digital revolution to shake up the traditional TV model, or at least give it some competition. But if Google starts investing directly in giant channels, it's unclear if there's still room for the little guys who have made YouTube what it is.

My colleague Dave Thier has other ideas about this new partnership, read his take here.