The popular video hosting service YouTube, owned by Google, is looking for ways to acquire the rights to broadcast and stream TV Serials and films, to support its new service, operated by subscription.
It seems that the video hosting site aims to strengthen its position in the competition with players of online TV Series and Movies showing websites like Netflix, Amazon and Hulu.
YouTube executives met with representatives of Hollywood studios and production companies to discuss licensing terms of new content in order to promote their offers YouTube Red and competitiveness famous services like Hulu and Netflix.
Negotiations should lead to the signing of agreements between YouTube and content producers to transfer the exclusive rights to create video resources.
The negotiations with Hollywood studios on behalf of YouTube’s is basically driven by two of its Executives – the former head of MTV programming Susanne Daniels and former chief executive of Netflix Callie Merriman said one of the sources. They began to run on YouTube at the end of 2014 and negotiations can lead to one of the former top managers Netflix – Kynkl Robert, who now heads the business unit for YouTube.
According to The Wall Street Journal, YouTube does not want to become another broadcaster old content and is trying to negotiate the purchase of completely new materials with full rights to distribute.
Thus, in the near future it will be possible to watch movies in theaters and in YouTube Red.
According to the same source, the video service is trying to strengthen ties with business partners by the Google service Play Store, licensing movies and TV shows to users Android.
YouTube plays mainly non-professional video, captured by general users. However, over the past few years the popularity of video-sharing world is practicing licensed video playback, among which the cartoons, shows, TV series and music videos are gaining more popularity.
This practice is aimed at attracting new custom audience share and increased revenue by sources such as advertising and paid subscription to view the content.
So far, the main source of income YouTube was advertising sales. Now the service is to encourage users to pay-per-view content, and one way to do it, is play series of its own production. Such business practice typical for Amazon, Hulu and Netflix.
Two months earlier, YouTube representatives stated the release of 10 films and series of its own production, access to which is to be produced on a paid basis. On official channel they will on-air the films or series made by other companies.
In order to make people want to pay for video content, it must be of the best quality.
“YouTube dominates among service with an advertising model, but they missed the development of the subscription services” – says partner Mark Terbik Greycroft Partners.
YouTube hopes to attract new users and increase revenues, including the expense of not only advertising, but also paid subscription content. For example, the company recently launched a Ads-Free, premium content service called “Red“, for which the subscription costs $9.99 per month.
However, the process is clearly at an early stage: the director of one of the Hollywood studios made it clear that the licensing of content from YouTube are not discussed.