Hollywood Reporter is reporting that Youtube has entered into a revenue sharing agreement with Lionsgate, an independent film studio. Under the terms of the agreement Lionsgate will be offered a branded video channel on Youtube to broadcast its movie promos and clips.
Eversince Youtube’s acquisition by Google two years back, the video sharing website entered into revenue sharing agreement with power users, added annotations feature – allowing users to annotate their videos, launched screening room to allow publishers to get their films pre-screened, added support for traditional AdSense ad units, but inspite of all this Google is still finding it hard to make a decent revenue from Youtube.
It is almost obvious that the current agreement would be no different in terms of fetching revenues for Google. Google is also fighting an uphill court battle against Viacom who has sued Google to the tune of $1 billion, alleging that Google was complicit of copyright infringements on Youtube. The court recently ordered Google to provide all user logs of Youtube to Viacom, which resulted in a hue and cry by privacy advocates. This resulted in Google and Viacom agreeing to preserve user privacy during the hand-shake of user logs.
Youtube, till now has proved to be more pains than gains for Google. But the acquisition effectively eliminated any chances of a competitor to get a leg up in the online video search race.