After a difficult row last month with Viacom, it looks like YouTube is due for a comeback. The BBC reports that they’ve struck a distribution deal to create three new YouTube channels – two for entertainment, one for news. The BBC is employing a terrific strategy, using YouTube to attack different types of video consumption and monetization:

• Add-Ons
  The first channel will feature Add-On clips that offer additional storyline information for major BBC shows. This might include cast member video diaries, extended features, trailers for upcoming episodes, etc. All clips will direct viewers to a BBC page where they can watch or download programs in full.
• Stand Alone Clips
  The second, called “BBC Worldwide”, will feature self-contained excerpts from popular shows. Approximately 3 – 6 minutes in length, these will be the main source of ad revenue, driving traffic to post roll advertisements rather than a BBC page.
• News Updates
  Finally, the BBC News channel will collect about 30 short news updates per day.

The BBC is exploring three different applications of YouTube as a promotional vehicle and source of revenue. Hopefully the BBC’s success will coax american media companies out of their user-generated shell-shock and into more flexible distribution deals with YouTube.

In the meantime, the New York Times reports that YouTube is shifting its focus towards smaller studio deals. The NYT writes,

“Google has been frustrated in its efforts to reach comprehensive deals with major studios and networks to put their video on YouTube. But in the meantime, it is forming partnerships with hundreds of smaller media companies that see value — or at least a valuable experiment — in contributing to the site.”

Some of those smaller partners include the Sundance Channel, the NBA, Hollywood Records, the YES Network, AskTheBuilder.com, and others. Because smaller media companies have more to gain from YouTube’s visibility, it’s easier for YouTube to sign content licensing deals without the legal headache of, say, working with Viacom or NBC.

Worth the Read:

• Microsoft’s Outreach Memo (Variety.com)
• YouTube BBC Deal Announce (Google Blogoscoped)
• BBC in Clips Deal With YouTube; Ad Rev Share; UK Blackout on News Clips (PaidContent.org)

This entry was posted on Friday, March 2nd, 2007 at 12:22 pm and is filed under Google, Media Convergence, Search: Video. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.