Hulu revenue split defined

There’s this gem from an interesting CNET report today on how Hollywood is warming to YouTube.

Hulu may have already hurt YouTube and Google in one significant way, according to one media executive. The portal has helped to establish revenue splits between online video distributors and content owners.

“The days of the 50–50 split between content owners and Web sites are over,” said the executive. “Content owners are not going to take less than 70 percent anymore and some are getting 90 percent. In Hulu’s case, 70 percent goes to the content owner. Hulu takes 20 and the Web sites who have distribution deals get 10 percent.”

These aren’t close to what Google was willing to accept in the past, but the search giant now appears more willing to compromise, said two studio executives.

I think this is part of a bigger trend that we’ll see developing in the next 24 months, as the revenue pendulum swings in favor of publishers. ESPN started the ball rolling by declining to take ads from the ad networks anymore, choosing to do its own ad serving. In so doing, it announced to the world that it and it alone would determine the value of its content.

Trackbacks

  1. […] Hulu revenue split defined […]

Speak Your Mind

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.