DOW JONES NEWSWIRES
Time Warner Inc. (TWX) and Google Inc. (GOOG) inked a deal that
will allow YouTube to host content from Time Warner-owned
television shows and movies.
The pact is the Internet giant's latest move to goose revenue
from YouTube, a popular video site Google bought for $1.65 billion.
Google has been under growing pressure to show it can make money
from the site, but last month it said it expected YouTube to be
profitable in the not-too-distant future.
Previously, YouTube has added content from Sony Corp. (SNE) unit
Sony Pictures Entertainment, MGM Studios Inc. and others. It also
struck a less-comprehensive deal with Walt Disney Co.'s (DIS) ABC
network for clips of sports highlights and other content.
Under the latest agreement, videos from Time Warner properties
will appear on YouTube and across Google's product suite. Clips
will include advertising, with time sold by Warner Bros.
Entertainment and Turner Broadcasting System. Time Warner's
properties will share ad revenue with YouTube. YouTube will also
feature Time Warner content in marketing and promotional campaigns,
including display ads.
The two companies already work together through another Time
Warner property - HBO - which has added promotional content from
some of its shows including "True Blood" and "Entourage" since last
year.
Others haven't been so willing to intertwine their products with
the site. Viacom Inc. (VIA), for example, sued Google in 2007
saying the company didn't do enough to prevent the appearance of
its content.
YouTube also lost out when Disney struck a deal with competitor
Hulu. Hulu is a joint venture of General Electric Co.'s (GE) NBC
Universal and News Corp. (NWS). News Corp. owns Dow Jones,
publisher of this newswire.
Time Warner's shares were up 27 cents to $27.11 in recent
trading, while Google's stock fell $2.35, or 0.5%, to $442.93.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com