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YouTube Gives TV Networks The Same Ad Deal As Digital-Only Content Partners
Now that YouTube has successfully lured TV networks to post their professionally-produced content on the site, in part with “sweetheart” revenue sharing deals, it’s considering the courtship period over.
AdAge is reporting that YouTube will be giving these prestige content providers — TV Networks and film studies — the same ad revenue sharing deal as digital-only video producers have long received. Instead of keeping 70 percent of ad revenues, the networks will have to settle for 55 percent, YouTube’s standard split.
YouTube is betting the brawn of its audience numbers will continue to attract the networks even when their so-called sweetheart deals come to an end. And there is still some sugar for the networks. AdAge reports that YouTube is lowering its minimum ad rates and allowing content providers to keep 100 percent of the revenue earned above YouTube’s minimum rate. They’ll just need to convince advertisers their content is worth a premium above everything else on YouTube.
According to AdAge, YouTube plans to have the new split in place for all partners by January 2014.