YouTube & Lions Gate Sharing Revenue For Video Content

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YouTube, the video subsidiary of Google Inc. (NASDAQ:GOOG) and Lions Gate Entertainment Corp. (USA) (NYSE:LGF) have officially partnered up on a revenue-sharing deal.  Lions Gate will get a branded channel on YouTube and will provide content from movies such as Dirty Dancing and TV shows such as Weeds. 

YouTube also expects Disney, MGM, Warner Brothers, and Universal to strike similar deals with them down the line as well. 

“You can take the strategy of fighting an endless war of trying to take down and resist YouTube or you can take the strategy of embracing the fact people seem to want to watch content in this way,” stated Curt Marvis, President of Digital Media at Lions Gate.  “I think we’re the first studio to make a move to really try to create a new level of monetization of the YouTube audience.”

Video clips that are streamed on the Lions Gate channel will have the full versions available for download at a certain price from the user.  The official launch of the video channel is not yet known.

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This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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