YouTube will stream full episodes of TV shows

11 10 2008

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YouTube said it will begin showing full-length television programs in addition to its shorter video offerings to generate ad revenue. The Google Inc.-owned Web site said the new program is to begin with shows from CBS Corp., including “The Young and the Restless,” “90210,” “Dexter” and “Californication.” YouTube said it is in discussions with other media partners, but declined to elaborate. The Web site plans to start selling commercial slots for advertisements that are to run before, during and after full-length videos. The content provider—CBS, initially—has the option sell the ads and YouTube will take a cut of the revenue.

YouTube previously resisted selling this ad format because the Web site feared turning off viewers of its shorter clips. But marketers have been slow to warm to advertising adjacent to the usual user-created videos that make up a majority of the videos on YouTube; some larger advertisers say they would prefer to run their ads alongside more-predictable online video content. Web sites that show full-length videos—such as ABC.com, owned by Walt Disney Co., and Hulu, a joint venture between News Corp.’s Fox and General Electric Co.’s NBC Universal—can charge high rates for their ads and frequently sell out their available inventory.

Source: WSJ

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