On the heels of a leak about negotiations between Disney and Hulu, the number 2 video sharing site, comes information regarding talks between Disney and YouTube, the number 1 video sharing site in the world.

The Deal

Under the agreement YouTube will have several shortform products for ABC TV and ESPN properties. Disney will sell its own advertising for the deal and share the revenue with YouTube. The deal benefits both parties.

YouTube has been a mostly user-generated content site and deals like this bring original broadcast quality entertainment to their site. While Disney has been looking to expand its reach online, teaming up with YouTube in this type of arrangement will only serve to aid their properties.

This deal provides us with the opportunity to reach a broader online audience, to experiment with different monetization models and to extend the reach of our advertisers within branded environments that they most desire
Disney Media Networks co-chair Anne Sweeney

ESPN’s YouTube Channel will launch in April while the ABC TV properties (ABC Entertainment, ABC News, ABC Family and SoapNet) will come online in May.

All of the content will be short form and fit in the common expectations of the YouTube channels currently online. Some of the content will be repurposed from Disney’s sites while other new content will be made specifically for the channels. 

Wrapping it up

This deal certainly stands to benefit both parties. I would imagine we might see some original programming coming out of Disney as they try to push the envelope with what can be done online. Also, some content that is not ready for prime-time might get a tune-up online and provide some useful research to Disney’s TV shows programmers.

* Disclosure – We maintain a YouTube channel which can be reached here