We have seen how YouTube has started to monetize its huge traffic by placing ads on its videos.
Google’s YouTube monetization plan has took a great leap yesterday as it is currently in discussions with Hollywood studios to start an online movie rental service.
According to Bloomberg, Sony Pictures Entertainment and Lions Gate Entertainment Corp. are currently talking with YouTube about offering new releases on the world’s most highly visited video site.
“Google’s trying to find ways to better monetize this very good asset,” said Andy Miedler, an analyst with Edward Jones & Co. in St. Louis. “As long as the economics make sense, I certainly applaud them for trying to increase the revenue stream.”
Chris Dale, a YouTube spokesman revealed:
“We hope to expand on both our great relationships with movie studios and on the selection and types of videos we offer our community,” Dale said, without being more specific. The Wall Street Journal reported the talks yesterday, saying Warner Bros. was also involved in the discussions.
YouTube’s Earnings a Surprise?
This has somehow brought back old memories of Google’s struggle to convert its massive traffic into revenue. Now that everything’s changed, this video sharing site is in safe hands, with an experienced team working to monetize it.
Back in July, Eric Schmidt, Google’s CEO, said he is optimistic about YouTube making a profit. However, we have yet to hear a single report on YouTube’s earnings thus far.
Maybe Google is planning to give its shareholders a big surprise. We shall gladly anticipate!
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