October 31st, 2011 by admin
YouTube is making a bold step into original programming in an entertainment venture with some hundred content creators, from Madonna to The Wall Street Journal.
The video site, owned by Google Inc., recently said it is launching more than 100 new video channels.
The Google Inc.-owned video site said Friday that it’s launching more than 100 new video channels. The partners include an array of Hollywood production companies, celebrities and new media groups that will produce mainly niche-oriented videos.
YouTube is shelling out $100 million to producers, according to people familiar with the matter, who spoke on condition of anonymity. The money is an advance on advertising money the videos will bring in, and Google will recoup its portion first before splitting the proceeds. Advances are as high as $5 million per channel, said another person familiar with the arrangement, also speaking on condition of anonymity.
YouTube in a blog posting said the channels are being developed “specifically for the digital age.”