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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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Remember Cable TV
By rasmith260 on 12/16/2009 2:07:56 PM , Rating: 5
I think you guys are either forgetting or may be too young to remember how Cable TV got its start. One of its selling points was No Commercials and over time, once profits starting leveling off, they brought in commercials with the argument that it would allow them to keep the prices down while allowing for more and better content and from there it was a slippery slope to what Cable TV is today (you pay ever increasing prices to Watch TV and Commercials, to some extent), and the same thing will happen with Youtube and Hulu. The more things change the more they stay the same, now back to the future.




RE: Remember Cable TV
By Slyne on 12/16/09, Rating: 0
"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home

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