Disney to launch ad-supported YouTube channels

by Staff, Brand Republic 31-Mar-09, 11:40

NEW YORK - Walt Disney is to put video clips from its broadcast networks ABC and ESPN on YouTube in an ad-supported, revenue-sharing agreement with Google, which has been seeking premium content to attract advertisers to its video-sharing site.

ABC and ESPN will show short video clips, such as sports highlights and news, plus recaps and web series on YouTube, but will fall short of offering full-length programming, the kind popular on video-sharing website Hulu.

YouTube has granted Disney a significant amount of control under the agreement, allowing the entertainment conglomerate to sell all its own advertising, test the use of pre-roll ads and use of ESPN's own proprietary video player within its dedicated YouTube channel.

Rollout of the video-sharing programme is scheduled to begin in mid-April for ESPN and early May for ABC.

Anne Sweeney, co-chair of Disney Media Networks, and president of Disney/ABC Television Group, said: "This deal provides us with the opportunity to reach a broader online audience, to experiment with different monetization models and to extend the reach of our advertisers within branded environments that they most desire."

Disney is also rumoured to be in talks with Hulu -- owned by rival News Corp and NBC -- to engage in a similar agreement, with the possibility of offering full-length content, however nothing has been confirmed.

In November, YouTube signed an agreement with MGM studios to deliver full-length films and older television programming, following a similar partnership with CBS signed a month previously to air old episodes of shows such as 'Star Trek'.