Disney and YouTube in video tie-up

31 March 2009

PALM BEACH, Florida: YouTube, the video-sharing site website owned by Google, has agreed a deal with The Walt Disney Company enabling it to show clips from the latter's ABC and ESPN networks on its web portal.

As part of the deal, the two companies will divide the revenues generated from ads broadcast alongside the short videos between them.

Featured content will include original online shows as well as highlights of sports programmes and content from ABC Entertainment and ABC News.

However, the deal will not cover full-length material, and Disney will also be able to sell ads around its video offerings on the site.

The company will also be able to use its own ESPN video player on its own YouTube "channel", indicative of what YouTube's director of content partnerships, Jordan Hoffner called a "flexible" on the part of the website regarding content deals.

Alongside the deal with YouTube, Disney is said to be in talks regarding distributing its long-form content on the web via Hulu, which is part-owned by companies including NBC Universal and News Corp.

Google is also said to be redesigning YouTube, filtering its content into different categories including "movies", "music" and "shows", and a separate section for user-generated content.

Data sourced from Wall Street Journal; additional content by WARC staff