Lions Gate, Google share YouTube revenue
BEVERLY HILLS, Calif. (AP) - July 16, 2008 The deal will put advertising on clips uploaded by users and by
the studio itself from Lions Gate movies such as the "Saw" horror
series and "Dirty Dancing."
The deal would make Lions Gate the second major moviemaker to
try to profit from the popularity of online movie clips.
"It's another example of a very, very creative group taking
advantage of their brand and then using the distribution network,
the Internet, to actually capture new users," said Google Chief
Executive Eric Schmidt, speaking at a conference put on by
Advertising Age and the William Morris Agency.
In March, Viacom Inc.'s Paramount Pictures launched a more
limited clip-sharing Facebook application called VooZoo that allows
users to share studio-made clips using points that they can
purchase.
Lions Gate's president of digital media, Curt Marvis, said the
YouTube channel would launch by early September.
Talks about the revenue-sharing deal emerged after Lions Gate
worked with YouTube to remove pirated copy from the site, Marvis
said. Some unsanctioned "Dirty Dancing" clips on YouTube have
generated more than a million views.
"The idea here is not to alienate fans of particular movies or
TV shows," Marvis said. "We just want to make some money out of
it."
YouTube has similar arrangements with CBS Corp. and the British
Broadcasting Corp.
The announcement came as Hollywood studios continued talks with
the Screen Actors Guild that included the issue of obtaining
actors' consent and paying them for use of their voice and images
in a commercial clips market.
Schmidt said Google was in discussions with other Hollywood
studios about similar arrangements, with the exception of Paramount
because of a Viacom suit accusing YouTube of violating copyrights
of shows on cable networks MTV, Nickelodeon and Comedy Central.