YouTube currently has a deal with Lionsgate, but it only stretches to short clips from films and TV shows. The deal, if the reports are accurate, signals a turning point for YouTube since it has largely been a headache for Hollywood studios since it first launched. After Google acquired YouTube, it refused to take responsibility for copyright infringing content posted by its users, citing the DMCA itself as protection.
Since then, it has made moves to remove pirated video content from its site at the convenience of the content owner. The reason for the change of heart is suspected to be Hulu, a video service already loaded with premium content that reportedly makes as much ad revenue as YouTube with only a fraction of the users. YouTube might have the numbers of users and reputation to compete, but it had to smooth over its relationship with the content companies first.
Another problematic area for YouTube was its image as a site offing web browser-locked low quality video content. YouTube has moved to provide higher quality video content and is developing video playing software that will provide clearer images. According to sources, the typical split of revenue will be 70% to the content owner and the rest of Google.
Written by: James Delahunty @ 10 Nov 2008 3:00
