After steadily losing about US$ 300 Million this year owing to a heavy drop in visitors, Disney realized that its target audience (esp. children) prefer to visit YouTube.com rather than Disney’s own portal Disney.com to get their cartoon fix & socialize elsewhere. Hence, Disney Interactive and Google’s YouTube announced a deal under which the two will collaborate on co-branded “family-friendly” video content development & formed a Disney Channel.
The deal, reportedly worth about US$ 15 Million (exact figure not confirmed), will initially feature original videos from Disney.
However, there are plans to sell advertising for the video series as well as collect, edit & publish amateur videos too. It seems YouTube, with its 800 Million plus visitors is well on its way to add the claimed 100 niche channels which seems to have begun well.
Youtube, who coincidently is involved in a legal battle with Nickelodeon over facilitating the posting of copyrighted material, could do well with this association with Disney as the brand itself will help increase their own traffic.
Commenting on the partnership, Disney Interactive co-president Jimmy Pitaro said in a statement, “With online video consumption exploding and YouTube at the center of that trend, we see an opportunity for Disney Interactive and YouTube to bring Disney’s legacy of storytelling to a new generation of families and Disney enthusiasts on the platforms they prefer. As we prepare to re-launch Disney.com in fall 2012, the Disney/YouTube destination will play a critical part in our next generation platform.”
Summarizing the partnership Pitaro added, “It’s imperative to go where our audience is”. So there you have it, YouTube is surely a force to reckon with.
We are sure our readers must be regularly visiting YouTube. Combined with proper parental control, one can have an additional avenue for their children’s entertainment.