YouTube and Hulu are racing to sign deals for movies and TV shows that will be attractive to advertisers, according to a story in the Wall Street Journal, which also says that YouTube will soon launch a new zone devoted to full-length movies and TV shows.
Google Inc.’s video-sharing site YouTube has created a new area of its site devoted to premium content, hoping to compete with Hulu in attracting advertisers to place videos in the programming, according to a story in the Wall Street Journal.
Written by Jessica E. Vascellaro, Elizabeth Holmes and Sarah McBride, the story says the new YouTube zone will add hundreds of full-length movies and thousands of full-length TV episodes.
YouTube and Hulu dominate two segments of the online video universe, the story says, but increasingly, they are competing for the same turf in an effort to acquire video that will attract advertising dollars.
With its new zone, YouTube is trying to strike a balance between Hollywood and homegrown, the story says.
Sony Pictures is among companies that will contribute content to YouTube’s longform zone. Meanwhile, Hulu is close to finalizing a deal with ABC that would trade rights to the network’s shows for a 10% to 30% stake in Hulu, which is jointly owned by NBC Universal and News Corp. It is also exploring carrying music videos, one of the most lucrative areas for YouTube.
WSJ Online subscribers may read the full story here.