Image via WikipediaNew York Times: YouTube Ads Turn Videos Into Revenue: In the past, Lions Gate, which owns the rights to the “Mad Men” clip, might have requested that TomR35’s version be taken down. But it has decided to leave clips like this up, and in return, YouTube runs ads with the video and splits the revenue with Lions Gate..... more than one-third of the two billion views of YouTube videos with ads each week are like TomR35’s “Mad Men” clip — uploaded without the copyright owner’s permission but left up by the owner’s choice .... “YouTube is a big component of our display revenue, and display is our next big business” ..... YouTube will bring in around $450 million in revenue this year .... Revenue at YouTube has more than doubled each year for the last three years ...... YouTube shares advertising revenue with content partners, who may be big entertainment companies like Lions Gate or amateur videographers who have developed a following. Hundreds of these partners make more than $100,000 a year. Some, like Sal Khan, a former hedge fund manager who now makes math and science education videos, have quit their day jobs..... YouTube is testing a pay-per-view film rental service and broadcasting live events like concerts, and it just signed a deal to show on-demand Major League Baseball games in Japan...... YouTube now has 160 million mobile views a day, almost triple last year’s number. When Google introduces Google TV later this year, people will be able to watch YouTube videos on Internet-connected televisions.
My point is if it can work for movie clips, it can work for full length movies. Pay per view online is also good,but it is not great. The business model has not caught up yet with technology. Viewers should have both options. You can pay per view, no ads, or you can watch for free, ads served. Choice, it's about choice.
The Web Not Yet Ready For The Video Format
Saavn's Great Business Model For Movies
