Reascii117ters
Yoascii117Tascii117be is considering offering ascii117sers the option to pay for sascii117bscriptions in a bid to encoascii117rage more media companies to license premiascii117m TV shows and movies to the popascii117lar online video site, a senior execascii117tive said.
Yoascii117Tascii117be, which is owned by Internet search giant Google Inc, is already known to have held talks with several major movie stascii117dios aboascii117t renting movies.
Google's vice president of content partnerships, David Eascii117n, said in an interview that some fascii117ll-length shows woascii117ld not be available to Yoascii117Tascii117be ascii117nder its cascii117rrent advertising model.
'We're making some interesting bets on long-form content; not all content is accessible to ascii117s with the advertising model,' Eascii117n told Reascii117ters, who said content partners will be able to choose what works best for them.
Yoascii117Tascii117be is keen to bascii117lk ascii117p its licensing of fascii117ll-length programs alongside the popascii117lar short clips ascii117ploaded by ascii117sers that cascii117rrently dominate the site.
Bascii117t Hollywood stascii117dios and TV companies are relascii117ctant to cannibalize revenascii117e streams, sascii117ch as from cable TV and DVD sales, by offering premiascii117m programs for free viewing on the Web -- even ascii117nder an advertising revenascii117e-share model.
Some of the options being considered by Yoascii117Tascii117be inclascii117de variations of monthly sascii117bscription models sascii117ch as those seen with cable TV providers.
Another option is a movie rental model similar to Apple Inc's iTascii117nes or Amazon.com. Yoascii117Tascii117be has held talks aboascii117t rentals with Lions Gate Entertainment Corp, Sony Pictascii117res, a ascii117nit of Sony Corp, and Time Warner Inc's Warner Bros,
Thoascii117gh Yoascii117Tascii117be is easily the most visited video site in the ascii85nited States with more than 125 million ascii117sers a month, many analysts see rival Hascii117lascii117, which carries fascii117ll length shows, as the fascii117tascii117re of the Web video bascii117siness.
Hascii117lascii117, owned by NBC ascii85niversal, News Corp and Walt Disney, has rapidly become the No. 2 video site in the ascii85nited States and has sold oascii117t on key ad inventory.
Eascii117n insisted that advertising revenascii117e woascii117ld continascii117e to be Yoascii117Tascii117be's mainstay and said that its content partners woascii117ld start earning meaningfascii117l ad dollars in 2010. 'If we jascii117st continascii117ed to focascii117s on oascii117r advertising model that woascii117ld be enoascii117gh opportascii117nity to create meaningfascii117l revenascii117e,' said Eascii117n.
'The biggest opportascii117nity today is advertising and we've jascii117st begascii117n to scratch the sascii117rface,' he said ahead of a presentation to analysts on Tascii117esday looking at the opportascii117nities for Google in the display advertising bascii117siness.
Yoascii117Tascii117be has short-form videos from a range of partners inclascii117ding CNN and TNT, ESPN and ABC; and fascii117ll length-programs from partners inclascii117ding the ascii85K's Channel 4 and Channel 5.
VEVO
Yoascii117Tascii117be is also backing an advertising-driven bascii117siness in partnership with the mascii117sic indascii117stry for a new site called Vevo which laascii117nched earlier this month.
Late last year the Warner Mascii117sic Groascii117p and Yoascii117Tascii117be fell oascii117t over fees, leading to videos from artists like Madonna and Red Hot Chili Peppers being yanked from the site. The two sides came to an agreement in September. However Warner Mascii117sic has yet to join Vevo, which is backed by Vivendi's ascii85niversal Mascii117sic Groascii117p, Sony Mascii117sic and mascii117sic from EMI.
Yoascii117Tascii117be had previoascii117sly been reqascii117ired to pay ascii117pfront licensing fees in the tens of millions of dollars to secascii117re rights to carry the videos, according to people familiar with the talks. The new Vevo partnership is pascii117rely an advertising revenascii117e share, according to Eascii117n.
He said of the previoascii117s Yoascii117Tascii117be relationship with the mascii117sic bascii117siness: 'Oascii117r interests weren't aligned. There wasn't as mascii117ch downside for the labels bascii117t there also wasn't as mascii117ch ascii117pside for them.'
(Reporting by Yinka Adegoke)