Bloomberg has an awesome breakdown of YouTube’s really cool announcement today. They’re launching their own “skinny bundle” of network and cable traditional TV access which will fuse with a high-tech cloud DVR and their own recommendations for YouTube videos.

A conversation will commence online about the viability of these low-priced “skinny bundles” and I tend to think they’re not a great model and won’t last. I don’t think Google thinks they’ll last either — I think their intention is to blur the lines between content on YT and TV. Because that’s the battle they’ve been fighting for years… Google is dominating digital ad spend but barely chipping away at television ad spend.

If they can change media buyer perceptions — prove that their content is just as premium as TV — then maybe they can get some of that dough. I don’t think it’s nearly that easy. Literally, this is the example, cited in the Bloomberg piece:

A query for cooking shows, for example, might turn up recommendations for Hell’s Kitchen, the TV staple from Fox, alongside Epic Meal Time, a web-only show produced by Studio71 GmbH.

Now THERE’S a stretch: Competition reality fans seamlessly transitioning into a handheld brofest about binge-eating. Is surfacing vloggers next to This Is Us going to accelerate cord cutting? Or shift ad spend from TV to digital? There’s no way.

This is a really cool service and it’s extremely thoughtfully designed. I’m thrilled to use it. But the idea that just putting these two types of content next to each other will somehow “merge” them in the eyes of audiences and advertisers is flawed. Until YouTube makes content like Empire, it’s not going to command revenue or ratings like Empire.

YouTube Bets It Can Convince Cordcutters to Pay for TV via Bloomberg