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Current ad sharing scheme doesn't allow YouTube access to all content

The online video market is dominated by YouTube. The Google-owned website has by far the lion's share of viewers each month for online video, but is unable to generate significant profits from its huge user base. YouTube has said in the past that the key to bringing in more advertisers was to get content that is more professional on its site.

To that end, Google and YouTube have held talks with TV networks and film studios over the possibility of putting full-length shows and films onto the YouTube network under an ad-sharing program. So far, only a few content producers have agreed to the plan. YouTube currently shares profits with some video makers of popular videos that become viral by invitation. YouTube has also tested pre-roll video ads of 15 to 30 seconds for effectiveness.

YouTube may have the most visitors, but Hulu is coming up fast and is where most users go when they want to watch full-length TV shows. Advertising sales on Hulu are doing well and reports claim that key advertising inventories are being sold out at Hulu. Hulu executives have stated before that a free model is a hard way for the site to capture the value of its content leading some to believe Hulu may transform into a paid content platform.

YouTube is now eyeing a paid content platform as well that would see users paying a subscription fee to view longer full-length TV shows and films. Google's David Eun has said that some full-length programs won't be available to it with its current ad revenue sharing program.

Eun told Reuters, "We're making some interesting bets on long-form content; not all content is accessible to us with the advertising model."

The monthly subscriptions to YouTube service would be similar to how cable companies operate and YouTube is looking into movie rentals like Apple and Amazon offer. So far, the video sharing site has not signed any major content partners for rentals or other longer form content types. Short clips of shows from partners are available on the YouTube platform.



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RE: To YouTube And Hulu
By callmeroy on 12/16/2009 12:13:34 PM , Rating: 2
exactly.

That line of thinking is one of the main reasons why I refused to pay for Sirius radio (even though my car was supposed to come with only 1 year free service but I actually had the service for 20 months for free)...I hate it with a passion and I think its quite "ballsy" -- any company who charges for their content but still runs ads on it.


RE: To YouTube And Hulu
By Yawgm0th on 12/16/2009 3:33:42 PM , Rating: 2
quote:
I hate it with a passion and I think its quite "ballsy" -- any company who charges for their content but still runs ads on it.
Like newspapers did for hundreds of years?

I'm not saying I like it, but I don't think it's ballsy at all.


RE: To YouTube And Hulu
By stirfry213 on 12/17/2009 12:53:02 PM , Rating: 2
Hardly a fair comparison. You can completely disregard the ads that come in the newspaper. They don't force you to read the ad to continue reading the story.


RE: To YouTube And Hulu
By Yawgm0th on 12/17/2009 2:59:47 PM , Rating: 1
You can ignore ads on websites. They usually have a skip button. No one forces you to read anything. Even the big pop-up (see this ad before continuing to [site]) are analogous to full-page or full-spread print adds in a newspaper or magazine. You have to turn past it to get to your content.

Besides, there's no AdBlock for newspapers.


RE: To YouTube And Hulu
By MamiyaOtaru on 12/17/2009 6:46:17 PM , Rating: 2
I take it you don't have cable or satellite TV?

And yeah that pisses me off. Years ago I thought part of the point of cable was going to be no ads.


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