Pay-Per-View the New Revenue Model for YouTube?

Thursday, July 17th, 2008 by Andy Beal

Pay-Per-View the New Revenue Model for YouTube?

Could it be that a new partnership with film studio Lionsgate holds a clue to how YouTube plans to finally make a little money?

A first glance the deal seems pretty straightforward:

While details of the deal are still being worked out, the revenue-sharing agreement will formalize the creation of a Lionsgate-branded channel where advertising will be placed on clips of Lionsgate assets ranging from the "Saw" franchise to classics like "Dirty Dancing." Lionsgate’s TV programming, including "Weeds," is also a part of the deal.

Then Curt Marvis, president of digital media at Lionsgate, drops a little easter egg:

Marvis noted that the deal also could allow Lionsgate to set up a transactional model in which YouTube users consuming a particular clip could be served a link to a relevant full-length digital download for purchase.

The emphasis is mine, but it’s important to not miss the possibility that YouTube might enter the pay-per-view business. I’m sure there’ll be no official comment from Google, and the above is not even a direct quote from Lionsgate, but it’s still intriguing.

What do you think? Would you pay to download full-length movies? Do you think this might give Android cell phones movie watching features?

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7 comments on “Pay-Per-View the New Revenue Model for YouTube?”

Warenwirtschaft Says:

July 17th, 2008 at 10:48 am

It may be a good idea to mix the youtube content with high-quality content that needs to be paid. The classical youtube video just would be a teaser for the real content.
This would leave the main part of youtube free (for all those private videos) but would give the possibility of a sound business model.
Ed Kohler Says:

July 17th, 2008 at 11:22 am

I don’t understand why they don’t offer a way for video publishers to create their own PPV videos. Instructional videos, for example, would do well.

Instead, I see videos on YouTube promoting instructional videos that can be purchased on DVD.
Alex Isaacs Says:

July 17th, 2008 at 12:05 pm

With HDtv technology where it is I can’t imagine giving up the comfort of my living room to sit on a chair and watch something on a screen that’s 31″ smaller.

I think I’d pass if it were available.
MB Web Design Says:

July 17th, 2008 at 6:41 pm

It seems a logical step forward for a website that’s hardly flush for generating revenue.
Utah SEO Pro Says:

July 17th, 2008 at 8:54 pm

Likely to be easily gamed for profit.

Utah SEO Pro’s last blog post..Advanced Keyword Research for SEO
Tiffany Says:

July 17th, 2008 at 11:06 pm

How much does youtube pay per view based on their plan?
Goran Web Design Says:

July 18th, 2008 at 8:02 am

What’s on a persons mind inevitably gets inadvertently blurted out, so expect to see more of this possible revenue model. YouTube has to start making money somehow, and pay per view makes the most sense.

Marketing Pilgrim