YouTube to Roll Out Film-, TV-Friendly Portal

Intended Rival to Hulu Will Be Optimized for TV Viewing

by Michael Learmonth

NEW YORK (AdAge.com) -- YouTube wants you to think it's a little bit less about dogs on skateboards and more about TV and movies. The Google video site announced a redesign today and a specialized portal that aims to make the service more hospitable for TV, film and TV-like in-video advertising that will be sold as part of Google TV.

The new video site will be owned and hosted by YouTube at YouTube.com/shows and will be sold as part of Google TV.

The channel within YouTube will be optimized for viewing on TV and is clearly intended as a competitor to Hulu, which has been accumulating users quickly and has a vast TV library from NBC Universal, News Corp., and soon, Walt Disney Co.

Professional-content emphasis
YouTube is also adding shows and subscription tabs to its home page to more quickly direct users past the hoi polloi of user-generated video to professional content.

With the redesign comes some new content from mostly existing partners. YouTube did get a new deal with Sony Pictures and Sony's video site Crackle, as well as Endemol, Anime Network, Scott Entertainment and some other niche producers. The company got expanded content from existing partners such as CBS, MGM and Lionsgate, but YouTube's library is dominated by musty library shows the networks aren't selling anywhere else, such as "Charlie's Angels," "90210" and "MacGyver." The only full-length show on YouTube currently on TV is CBS's "Harpers Island."

In all, a YouTube spokesman said content will increase from a few dozen movies to hundreds, and from a few hundred TV shows to thousands.

Key selling point
The video channel comes on the heels of YouTube's announcement with Universal Music Group to create a site for music videos, Vevo. But unlike Vevo, the site will be owned and hosted by YouTube at YouTube.com/shows.

Unlike Hulu, YouTube will accommodate partners' own video players, a key selling point for content partners that want to keep tighter control over their video. That YouTube has had such trouble landing TV and film is an indication of how much mistrust remains among the studios. None of its content deals are exclusive.

YouTube will start selling TV-like ad spots within the shows, which it has been testing since October, or allow their partners to bring their own ads into the service. In addition to video ads, YouTube will also sell its own array of display ads and overlays as well as the text ads it is well known for.

Focus on advertising
The intent is to create a lean-back video experience for users who want to watch a mix of user-generated video, film and TV. Shiva Rajaraman, YouTube senior product manager, said the prime time of the future is user-programmed and will consist of all manner of TV, movies, music videos and all types of user-generated video.

In Google's earnings call, CEO Eric Schmidt indicated that YouTube was making good progress with small and medium-size studios and that YouTube would also look beyond advertising for revenue. "We do expect over time to see micropayments and other forms as well, but our initial focus is on advertising," he said.

Original Article Here.

YouTube, Universal Partner to Build Hulu for Music

New Video Site Vevo to Use Customized Player
by Michael Learmonth

NEW YORK (AdAge.com) -- Google's YouTube and Universal Music Group, the world's largest record label, are going into business together in a deal they hope will forge a future for ad-supported music.

UMG's artists and channels have accumulated 6.2 trillion views on YouTube since its inception.

The two announced a licensing and advertising revenue sharing agreement on Thursday that covers the use of UMG music on YouTube around the world, as well as a joint venture to create a new video site, Vevo, a concept that bears more than a small resemblance to the NBC-News Corp. joint venture meant to create a business for ad-supported TV online, Hulu.

Vevo, which will be launched later this year, initially will have just UMG music, but CEO Doug Morris said he is in talks with Sony Music Entertainment, EMI and Warner Music Group about joining the venture. Warner pulled its content off YouTube in December after an impasse in talks to renew a licensing deal.

The new service changes the old model under which YouTube paid the labels a fraction of a penny when a song was played, either as an official video or a soundtrack for a user-generated video. The economics of the new deal are based on sharing ad revenue.

Like Hulu, Vevo will have its own, separate site and customized, branded player, which can be embedded on other sites, as well as carry pre-roll video ads. YouTube will provide the technology and infrastructure for Vevo, its first outside site. Google CEO Eric Schmidt said he'd like to see YouTube launch other sites, perhaps for other types of content.

UMG's artists and channels have accumulated 6.2 trillion views on YouTube since its inception, according to web-video-analytics company TubeMogul. Sony Music Entertainment has accrued 4.8 trillion views, and Warner Music Group has just over 1 trillion views. Typically music videos account for between 40% and 60% of the top 100 videos at any given time. The deal keeps UMG tracks on YouTube, a vital source of advertiser-friendly content.

Creating a Hulu for music isn't a new idea. Viacom is giving it a try with MTV Music. The next question for Vevo is whether the other labels now follow suit. CBS, ABC and Viacom stood on the sidelines two years ago when NBC and Fox created Hulu; now Viacom is licensing content to the service, and ABC is in talks to join up. The labels desperately need to develop new revenue streams besides the sale of physical CDs.

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