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A Unique Union – Youtube And Disney Partner Up

Youtube and DisneyRecent years have proven the true power of the Internet; showing that the power of popularity no longer resided with the large companies, but now to the innovative minds who dreamed big and made their fortune on the web. YouTube is one such innovative creation and it is now one of the most popular websites on the web.

Due to the widespread movement towards the Internet, some companies who have not changed their ways and fully tapped into the internet potential have noticed a significant drop in views. Disney has felt the harsh effects and the actual numbers are astonishing. Disney Interactive has lost more than $300 million in the last four quarters alone and the visitors to their site have gone from 17.9 million in June to 12.7 million September.

In an effort to regain the lost traffic Mr. Pitaro, part of Disney Interactive, has devised a way to create web videos that not only will restore their lost visitors, but also stop the slow bleeding of money that is happening. This is where YouTube came into the plan.

YouTube and Disney Interactive Media will spend about $10-$15million to create a web video series based off of a popular Disney App titled “Where’s My Water?” This series will be on a channel in YouTube and Disney will also include an amateur video on the channel that will be uploaded each day.

So what exactly does each company gain by teaming up with the other? Disney obviously taps into the vast amount of viewers that are on YouTube and it stands to gain a massive increase in popularity again, however for YouTube this union means something completely different.

Disney has long been something parents deem appropriate for their children, however YouTube is something often scorned by parents for ‘mature themed videos’ on their site. Even though YouTube’s terms of service require users to be at least thirteen years of age, it is incredibly easy for younger users to access; and young kids do access it frequently. As such YouTube stands to gain the trust of parents and YouTube will now have additional professional videos seen on their site which helps them compete against TV.

YouTube has long desired to be a stronger force in professional content and studios have been reluctant to allow YouTube (and Google) free material however Disney’s involvement will definitely increase the chances of this happening for YouTube. On top of that YouTube is involved in a legal battle with the owner of Nickelodeon, a company named Viacom. Viacom has ensured that YouTube does not have any access to its videos or any of its promotional content. Now YouTube has Disney on their side and Disney will be a key player in this battle.

The future profits of the revenue will be split between both YouTube and Disney, and Disney isn’t just stopping there. On top of this major deal with YouTube, they will also be completely redesigning their website amongst other things!

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