YouTube, Sony Pictures in negotiations for films

YouTube continues its content quest and is currently in talks to license full-length Sony Pictures movies. Details of the deal are sparse, but if it comes to pass it would likely be a boon for both companies, as YouTube would gain more of the professional content it needs to drive revenues and Sony would get a huge distribution channel plus a share of the ad revenue.

If Sony and YouTube were to reach an agreement, it would be the latest in a string of professional content deals YouTube has negotiated recently, including a deal to bring Disney short-form clips to the site and to launch a co-branded music video site with Universal Music. The site needs to leverage its gigantic audience with more professional content, which commands higher CPMs, as an analyst recently estimated the site will lose close to $500 million this year.

If the YouTube-Sony deal looks anything like previous deals Sony has signed with online video distribution companies, YouTube won't get access to more than 15 of the studio's films and may have to use Sony's Crackle player for the movies, according to CNET.

For more:
- see the CNET.com story here 

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