With competition playing a key factor in the business of information technology, it seems every corporation is in search of the next big thing. In the I.T. world, that next big something centers on developing the best in high-quality video streaming.

It has recently been announced that YouTube, the web’s biggest video-sharing site, is finalizing a new deal with networks and studios to ascertain and create more entertainment related content. In fact, according to The Wall Street Journal, YouTube is seeking to become a next-generation cable provider, and has teamed up with distinguished personalities including skateboarder Tony Hawk and CSI creator Anthony Zuiker. The company is even willing to wage $100 million to get their new project off the ground.

Since its launch in February of 2005, YouTube has had quite a social impact due to the amount of videos it has posted…and the people posting them, which is practically everyone.  It is relatively simple for an individual to upload a video onto the site. All that is mandatory is an internet connection, and all that was obligatory for YouTube to become a sensation was views. The website now exceeds two billion views per day, and 24 hours of video are uploaded every minute. Talk about staying busy.

But with YouTube now in talks to produce original content, it seems they are set to become a bit busier. This of course could spell certain disaster for companies in the video streaming game such as Hulu and Netflix. Then again, what is competition if one doesn’t rise to the occasion?

Netflix, with 25 million members in the United States and Canada, is the world’s leading Internet subscription service when it comes to viewing television shows and movies. While individuals are able to watch videos for free on YouTube, Netflix charges $7.99 a month. However, Netflix boasts a rather remarkable selection including entire seasons of current television programs such as Desperate Housewives, The Office, and Psych in addition to classic movies like Breakfast at Tiffany’s. Another thing it has going for it is its streaming options. Netflix can be streamed online from Sony’s Playstation 3, Microsoft’s Xbox 360, the Nintendo Wii and a slew of Blu-ray players. In addition to this, Netflix also enables customers to rent their favorite DVD’s.

There was talk of relegating its DVD service to a new entity called Qwikster. However, after customers (loudly) complained, the company decided to keep its DVD library. According to their blog, Netflix has recently added hundreds of movies from Paramount, Sony, Universal, Fox, Warner Bros and other top-notch movie studios. Furthermore, they have also added over 3,500 TV episodes from ABC, NBC, Fox, CBS, USA, Nickelodeon, Disney Channel, and other various networks. Perhaps Netflix won’t be affected by YouTube’s new pricey venture.

But what about Hulu? Created in March 2007, it bares certain similarities to both Netflix and YouTube, and offers a selection of hit shows, movies and clips from over 260 content companies at Hulu.com.  The ownership stake of the company is shared by NBCUniversal, The Walt Disney Company, News Corporation, Providence Equity Partners and the Hulu team itself, and while it may be free to users through an advertising supported model, Hulu Plus, its ad-supported subscription service, is not.

According to its website, Hulu Plus offers current and back season shows from ABC, Comedy Central, Fox, NBC, and MTV to connected devices. It is available on smart TV’s, gaming consoles, and mobile phones. Just like Netflix, it only costs $7.99 a month.

Since purchasing YouTube for $1.6 billion in 2006, Google has been trying to prepare the site for individuals that wish to watch online video from the comfort of their living rooms, or on the go with their phones or tablets such as iPads, Androids, and HP TouchPads.  Perhaps they’ll be able to do this with YouTube’s new content. It does seem as though they are off to a good start. However, they may want to be careful. Netflix and Hulu do appear to have a commanding presence and are probably up for a little friendly competition. Why wouldn’t they be?

After all, it’s true what they say – to the victor goes the spoils.

- Jaylen Christie

Are you geared up for YouTube’s upcoming changes? What will this mean for Hulu and Netflix? Let us know at our Facebook Page, our Twitter, or by sounding off in the comments below!