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YouTube: It's time to start cutting deals

YouTube may be about to enter a key dealmaking phase kicked off by plans to run full-length ad supported movies on its site. However, the big missing element may be a better cut for the entertainment industry.
Written by Larry Dignan, Contributor on

YouTube may be about to enter a key dealmaking phase kicked off by plans to run full-length ad supported movies on its site. However, the big missing element may be a better cut for the entertainment industry.

Let's connect a few dots on YouTube:

Add it up and all signs point to a friendlier YouTube to the content industry. One key point Tom Steinert-Threlkeld makes in his YouTube special report is the iTunes precedent. Apple cuts content owners in on the revenue share and gives up 70 percent of the revenue. If you're a content owner why would you allow YouTube to cut anything different?

Download: YouTube’s video ID system: Is 75 percent accuracy good enough? Video ID system cost benefit and revenue calculators. (15-page special report includes: Executive checklists, YouTube’s vendors and analysis.)

As for MySpace's deal with MTV I'd reckon the revenue split is nearly identical to what Apple provides. MySpace won't detail specifics on the deal. My hunch is that YouTube and Google ultimately move into a similar direction. If YouTube emulates iTunes' model a lot of problems--which divert valuable resources--go away.

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