Walt Disney Company and YouTube, two of the most powerful media companies in the world, are entering into a partnership that will help both reach new heights.
The deal will be officially announced on Monday, under which Disney Interactive Media and YouTube will spend between $10 million to $15 million to create an original video series. Disney will produce the series while will be distributed on YouTube and Disney.com, which are co-branded channels.
To a certain extent this deal, however, may not be equal in the amount of profit each company stands to earn. For example, fewer children turn to Disney.com to watch videos as compared to YouTube. Thus, through this deal, Disney will be trying to get young viewers to watch their videos by making YouTube a part of its own website.
Co-president of Disney Interactive, James A. Pitaro, said, "It's imperative to go where our audience is," as reported by The New York Times. The outcome of the partnership will be eagerly anticipated by both companies and others.