Youtube has announced that it will become a portal for watching full length movies and TV shows in a bid to compete with its more attractive competitor Hulu. Unfortunately for now they will only be watchable for US residents.

To further distance itself from being just a funny videos website and becoming more premium content based, the video giant has struck deals with major studios and content providers.

In a thawing out of relations between itself and Hollywood, YouTube is slowly but surely ramping up its full length movies, films and TV shows available to view.

They have struck deals with a number of big players including Sony, CBS, Lionsgate and even the BBC to provide content on its site. In a Youtube blog post it announced:-

” Today we’re excited to announce a new destination for television shows and an improved destination for movies on YouTube, where partners like Crackle, CBS, MGM, Lionsgate, Starz and many others have made thousands of television episodes and hundreds of movies available for you to watch, comment on, favorite and share. This addition is one of many efforts underway to ensure that we’re offering you all the different kinds of video you want to see, from bedroom vlogs and citizen journalism reports to music videos and full-length films and TV shows.

While shows and movies are currently limited to users in the U.S., we look forward to expanding to other regions as soon as possible, and we’re pleased to inform you that the “Subscriptions” tab will be available worldwide in the next few weeks. “

Sony spokesperson, Paula Askanas commented:- “YouTube really wanted high-quality content, and in return we’re getting traffic.”

The website will be showing literally hundreds of movies and TV shows. Sony have initially given 15 movies to be shown on YouTube. The content will be totally free, but will not be recent releases. When viewers click on a link they will be redirected to studio sites that will show the content as well as advertising. By hosting the films themselves and serving the ads, studios retain control, collect traffic and avoid any copyright issues.

Sony for example will show its content using its Crackle video player.

This follows on from last month when YouTube struck a deal with Disney to show shorts from ABC and ESPN. The website also has an MGM channel showing movies.

Askansas would not be drawn on the financial details of the agreement, but indicated that a ad revenue split was likely. YouTube needs to allow premium content providers control over their advertising environment in order to get additional content from the big studios in the future.

YouTube will then be able to match its massive traffic with the ability to show premium Hollywood content which makes it much more attractive to advertisers.

Although it is massively popular, YouTube has been losing money for owners Google, which purchased the website in a $1.65 billion deal in 2006. At that time, YouTube was popular in part because of illegally posted content and viral videos.

They have since eliminated most of the pirated stuff and have been on a charm offensive with the major Hollywood studios. They have realised that they have no other option than to play ball. At least for now.

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