Lionsgate, a well-known Hollywood studio, has struck a revenue-sharing deal with video sharing site YouTube.
The partnership was initially announced by Google’s CEO Eric Schmidt at the Madison and Vine Conference in Los Angeles and was later confirmed by Curt Marvis, President, Digital Media, Lionsgate.
The deal would allow YouTube to share movie clips from Lionsgate, and revenues thus earned would be shared between the two; even the videos placed by other YouTube users would also make money for the studio.
However, the final partnership document is yet to be formalized, it seems that the deal would create a Lionsgate branded channel on YouTube, which would broadcast Lionsgate’s classics, including the likes of “Saw”, “Dirty Dancing”, and the famous TV show “Weeds”.
The full-length movies may not be available for free, as the short movie clips would be accompanied by a purchasing option for downloading the full video, the Hollywood Reporter stated.
Lionsgate is the first movie company to enter such a partnership with YouTube, and it may inspire other companies to catch YouTube audience.