YouTube Signs Premium Content Deal From Hollywood Providers
SAN BRUNO, Calif. Ė YouTube recently completed a deal that will expand its content base to include two-dozen new TV-style entertainment channels, according to The Hollywood Reporter.
The Google owned site reportedly signed a deal Friday that could yield original programming as early as next year from such partners as Warner Bros., Berman Braum, Shine Reveille and Fremantle Media.
The project will cost Google as much as $150 million and sources close to the deal said Google is expected to make an announcement within a month.
The new undertaking is part of a drive to beef up YouTubeís premium content offering, and some speculate to compete with other entertainment video sites like, HBO GO, Netflix and Hulu.
Created by three former PayPal employees in 2005, YouTube has come a long way from user-generated videos. In 2010, YouTube began offering premium fare to its users for $3.99 or certain older titles free with advertising.
The current creation is expected to be a separate initiative from its current video rental service, according to inside sources.
The San Bruno based company purchased by Google in November 2006, for $1.65 billion has created a reputation for bridging together cultures, entertainment and ideas from around the world with movie clips, TV clips, music videos and amateur content such as video blogs and short original videos.
According to Website Outlook, YouTube is one of the most popular sites on the net, receiving 366,666,666 page views per day, generating an estimated $110, 000 in daily revenue and worth about $803 million.