YouTube Plans To Pay Per Play

by Noc Team on September 4, 2009

youtube1-We know you are always signed in on your YouTube account during office hours. Now we do not need to instruct the MIS or IT department to block every link that leads to YouTube, because YouTube, the free video streaming website is making arrangement s in order to make you pay-per-play as you watch the published movies.

YouTube is in talks with Hollywood’s studios Lions Gate Entertainment, Sony Corporation’s movie studio, Time Warner’s Warner Bros and Metro-Goldwyn-Mayer who already have advertising revenue-sharing deals with it. The discussions are still in process and the deal will totally depend upon the decision of the pricing. All the above mentioned studios will come up with their own terms and conditions but will receive 60 per cent of the total revenue earned, with a floor of about $2.40 that could vary depending on the age of the title.

“While we don’t comment on rumour or speculation, we hope to expand on both our great relationship with movie studios and on the selection and types of videos we offer our community,” said YouTube spokesman Chris Dale.

YouTube plans a three month trial in order to test the world’s response on the rental service. If succeeds, then the plan of renting videos will help Google return to its old business. Besides providing a free look at the short clips, Google Video had earlier sold the rights of viewing free movies and TV shows, before it bought YouTube for $1.76 billion, nearly three years ago. After selling its rights Google jumped directly into the YouTube business and built its pool of audience all over the world by providing them with YouTube’s totally free service.

YouTube did more than any other to build an online video sector. Now its urge to become a major player in Hollywood is justified when we observe the increasing number of online Web video services providing top quality viewing experience to their audiences

Some believe that in order to earn profits or even generate decent return, a considerable amount of ads should accompany the video. However, Sales done by Warner bros on-line have proved to be of great success. On-line sales have enabled them to boost profits and have not hurt the physical rentals at all.

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