Dive Brief:
- NBCUniversal has inked a deal with YouTube that will allow the media giant to monetize its videos with ad placement.
- Major media companies have long had issues with YouTube’s revenue sharing policy, which is the same for any publisher from an individual content creator to media giants like NBCU.
- Under the terms of the deal, NBCU will sell the ads itself, although it has reportedly agreed to YouTube’s standard ad revenue terms.
Dive Insight:
If you enjoy watching Jimmy Fallon’s lip synching battles on YouTube, get ready to see some ads.
NBCU cut a deal with Google to be able to sell ads alongside its YouTube content, including popular clips from “The Tonight Show.” The deal should provide NBCU with a new revenue stream. The deal is significant because most major media companies have avoided advertising on YouTube due to its ad revenue split with content producers that gives YouTube a 45% cut. Terms of the deal haven’t been released, but sources close to the matter told Wall Street Journal that NBCU agreed to YouTube’s standard terms.
“Over time, it’s not a coincidence, we’ve been able to form better partnerships,” Linda Yaccarino, NBCU’s chairman of advertising sales and client partnerships, told the Wall Street Journal. “So strategically, this is a logical turn of events. You’ve see us make the AOL deal, and investing in Vox and BuzzFeed. So this makes sense. We are really getting aggressive in terms of getting our content to as many consumers as possible.”
The deal includes selling ads on video content from a variety of NBCU networks such as E! and USA, as well as NBC.
