YouTube, Lions Gate partner on ads

Published: Friday, July 18, 2008 12:05 a.m. MDT
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BEVERLY HILLS, Calif. — Google Inc. said Wednesday that its YouTube video site will partner with Lions Gate Entertainment Corp. to share revenue from ads placed on clips from the studio's movies.

The deal will put advertising on clips uploaded by users and by the studio itself from Lions Gate movies such as the "Saw" horror series.

"It's another example of a very, very creative group taking advantage of their brand and then using the distribution network, the Internet, to actually capture new users," said Google chief executive Eric Schmidt, who was speaking at a conference put on by Ad Age and the William Morris Agency.

He said the clip service would be launched soon.

YouTube has a similar arrangement with CBS Corp. and the British Broadcasting Corp.

Schmidt said Google was in discussions with other Hollywood studios about similar arrangements, with the exception of Viacom Inc.'s Paramount Pictures, because of a Viacom suit accusing YouTube of violating copyrights of shows on cable networks MTV, Nickelodeon and Comedy Central.

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