YouTube Planning Rev-Share with Customers
YouTube, Google’s $1.65 billion video sharing community, is planning to share revenue with users.
“In terms of paying users revenue against the content that they are uploading, we definitely are going to be moving in that direction,” said YouTube co-founder Chad Hurley at the World Economic Forum in Switzerland over the weekend. The mechanics of the revenue sharing system have not been disclosed. Smaller video sharing communities like Revver pay video uploaders by splitting revenue 50/50 from clickable ads displayed at the end of each video.
YouTube initially avoided an advertising-based revenue model because Hurley and his partners wanted to “keep it pure.” YouTube reached the eyes and ears of 38 million in December 2006, according to Nielsen//NetRatings, far more than Revver. Hurley cited the growing audience and access to Google’s advertising experience and technology for the change in direction. “We are getting an audience large enough where we have an opportunity to support creativity, to foster creativity through sharing revenue with our users,” Hurley added.
YouTube has faced legal action from content providers who hold YouTube responsible for copyrighted content uploaded onto its servers. Recently Twentieth Century Fox sent a subpoena to YouTube to learn the identity of a user who uploaded episodes of “24″ and “The Simpsons” before their broadcast air date. YouTube regularly polices its system and removes copyrighted content and has been working on a system to automate the process.
Just before the announcement of YouTube’s sale to Google in October 2006, YouTube signed deals with companies like CBS and Sony BMG to distribute its copyrighted content. In the past, the company has also posted sponsored videos and movie trailers on the home page.
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