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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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I don't see any problem with this
By kroker on 12/16/2009 7:25:12 PM , Rating: 2
Please don't take this out of context, Youtube didn't claim anywhere that they were asking you to pay for the content it is currently providing for free. It's just an extra service, for which you can choose to pay or not.

Hulu might be nice, but it's only available in the US, and I'm from Europe. I don't want to install special software to trick Hulu to use it outside of the US, which may or may not work today, and may or may not work tomorrow. The only taste of free legal videos (supported by ads) which I got so far was with southparkstudios (there might be other sites like this as well, I'm not an avid video watcher)

I might consider Youtube's offer if it's compelling and has a reasonable price. Then again, I might not. But the important part is that I would have an extra choice for something that wasn't there before without loosing any of the existing functionality. So, what's the problem?

Would I pay for such a subscription service? As I said, it depends a lot on what they would offer and at what price. But... I think the more likely answer is not. Truth be told I don't think anyone likes the subscription model, many would prefer something like Hulu, but hey, you don't always get what you want.

"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
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