YouTube and Hearst-Argyle to Share Revenue

YouTube, Google's online video-sharing unit, announced Sunday it has reached a revenue-sharing deal with local TV station operator Hearst-Argyle TV. Hearst-Argyle, which owns 26 stations, will provide YouTube with news, weather and entertainment content as well as digital video clips of local interest, including high school football and basketball games and amateur entertainment. In exchange, YouTube will pay licensing fees to the originating local stations each time their clips are viewed on the site. This will be the first time YouTube has paid for video content from local TV. The fees will be paid from the ad revenue YouTube earns when users view Hearst-Argyle's clips. The percentage that will go to Hearst-Argyle was not disclosed. "We have great content, and they have great distribution," said Terry Mackin, Hearst-Argyle's executive VP. The announcement follows YouTube's agreement last week to enter into a video and music licensing agreement with EMI Group. That deal will allow users to play EMI videos and recordings on YouTube and also to incorporate them into their own video content. YouTube will track viewers' use of EMI content and pay its artists accordingly.

Sources: Wall Street Journal, Reuters, News.com
Commentary: Google's YouTube and Revenue Sharing • Four Broadcast TV Stocks to Watch -- Barron's • Google’s Video PlusBox: Most Disruptive Feature Ever?
Stocks/ETFs to watch: Hearst-Argyle Television, Inc. (HTV), Google Inc. (GOOG). Competitors: Microsoft Corp. (MSFT), Yahoo! Inc. (YHOO), Sinclair Broadcast Group Inc. (SBGI). ETFs: First Trust IPOX-100 Index (FPX), First Trust Dow Jones Internet Index (FDN), iShares S&P Global Technology (IXN)
Conference call transcripts: Google Q1 2007

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Comments

[charles656oio:]

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2007 Jun 04 10:41 PM