In an effort to increase premium content on YouTube, the company opened new discussions with Hollywood to produce more 'must see' programming on YouTube.
For both YouTube and Hollywood (and other, more independent movie producers) the advantages seem to be clear. YouTube (Google) can further increase its dominance in online video services, while attracting more higher- priced advertising. They also prevent a new competitor, or a current one becoming stronger (like Amazon), in the market that could offer these kind of videos in the future
For Hollywood, the largest video streaming service (YouTube) can offer a completely new audience and revenue source, as more and more younger people use this channel to watch content
But still, it is unclear if the talks between the companies becomes a success. Reasons for that are unknown, but it might have something to do with the lack of thrust in each other. Chances are high that in the case this idea becomes a success, either Hollywood becomes very dependent on YouTube for a large share of its revenue, or YouTube faces a new competitor in the case Hollywood decides to start their own channel
To be continued!
http://www.reuters.com/article/2014/07/13/us-youtube-content-idUSKBN0FI0E420140713
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