YouTube and Hollywood kiss and make up

The Feedster

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YouTube used to be a thorn in the side of Hollywood with its laissez-faireapproach to copyrighted content. But it seems the ever-popular website has started to take movie studios' threats seriously.

Just last week, according to the Hollywood Reporter, the company agreed a content deal with Lionsgate which sees YouTube share the revenue it gets for posting clips of the studio's films and TV with Lionsgate.

Unauthorised clips will still not be allowed to be posted on the site, only official ones from Lionsgate will be shown in what will most likely be a branded channel.

Lucrative prospect

This agreement looks set to open the doors for other Hollywood studios, which will in turn help YouTube with its advertisement deals. At the moment, advertising isn't tagged on unsolicited material. Official material is a much more lucrative prospect for online advertisers.

The problem that YouTube faces is that Universal has already signed exclusive deals with rival video site Hulu.com and Paramount isn't going to sign up just yet as its parent company Viacom is currently suing the site for multiple copyright infringements.

If more deals are signed, though, it will mean that YouTube won't just be a place where studios post trailers but a portal for exclusive content.

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