CBS wasn't ready to share its ad revenue with Hulu in March, but the network is alright splitting those dollars with YouTube. Today, CBS began streaming content on Google' video site.
For now the network is showing a random smattering of shows that include
"MacGyver," "Star Trek," the original "Beverly Hills 90210," and current episodes of "The Young and the Restless." Season premieres of Showtime's "Dexter" and "Californication" will also be available.
YouTube already shows plenty of network content (though it doesn't always stay there), but this is the company's first approved partnership for full-length content with a network. CBS will serve pre-roll, mid-roll and post-roll ads to the content.
This is more evidence of YouTube ramping up its presence (and earnings) in quality video.
Earlier this week the site introduced TheaterView, which allows for higher quality viewing of online video watching.
YouTube and CBS have not disclosed their revenue sharing terms, but
YouTube must be receiving less than 30 percent of the ad revenue, considering that CBS refused to join NBC and FOX at Hulu because it didn't want to give up the 30 percent revenue share that the site was asking for. Instead, CBS has chosen to do 80-20 deals with various syndication partners.
YouTube accounts for 44.1 percent of online videos views in the U.S., compared to Hulu's one percent of views. YouTube has a long way to go achieve the viewing experience that Hulu presents, but if the video giant is willing to take a slightly smaller revenue share across the board, it may just have found a way to edge its way into the network business and eat Hulu's lunch.
