Google (GOOG) signed a big content deal with Time Warner (TWX) today today.
Because advertisers won’t pay to put their brands next to dogs on skateboards, Google is trying to transform YouTube from a user-generated video-sharing site into a TV-on-the-Web Hulu competitor.
Execs say this change in strategy will make the site profitable soon.
The only thing we don’t like about today’s deal is that YouTube gets so few full-length TV shows and so many promotional clips instead.
The AP reports:
NEW YORK (AP) — Time Warner Inc. said Wednesday it would provide clips of TV shows and movies to Google Inc.’s YouTube, while selling ads against them and sharing the revenue with the online video site.
The promotional clips would feature shows such as “Gossip Girl,” “The Ellen DeGeneres Show,” and animated shows from Cartoon Network and Adult Swim. CNN news items and Warner Bros. movies would also be highlighted.
Since last year, Time Warner’s pay channel HBO had been providing clips from shows including “True Blood,” “Hung” and “Entourage” on a branded YouTube channel.
The partnership is one of many initiatives from Time Warner to put its content online. In July, it made full-length cable shows available to 5,000 Comcast Corp. subscribers over the Internet for no additional fee.
Shares of Time Warner added 25 cent to $27.10 in morning trading, while Google shares fell $2.43 to $442.85.
Photo: Spencer E. Holtaway
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.