Google begins sharing the video wealth

October 31, 2006

Google has announced the beginning of a practise I blogged about a few weeks back, that they would find a way to keep some copyright owners happy by sharing the revenue generated from advertising displayed when users view videos. Google has agreed to hand over most of the advertising revenue generated by viewers of a video from Fritz Grobe and Stephen Voltz, creators of the hugely viral Diet Coke & Mentos video. First reported on Googleblog it seems to be the first instance of a video sponsorhip program Google are now touting.

Up to now video on sites like Google Video and YouTube has either been the kind of fun videos generated by users, viral efforts or copyright owned clips. Giving publishers an opportunity to get the kind of audience these sites offer and a way to earn the lions share of the revenue from that offering will be hugely attractive to both copyright owners and viral producers.

It’s video sharing sites like these that make or break a viral campaign, adding a new angle of earning advertising revenue directly from views (as well as the brand equity etc that a viral can produce) can only be a good thing for the viral sector! I’d expect to see a YouTube revenue share deal come to the fore as soon as the acquisition is finalised and out of due dilligence.

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