Credit: Shutterstock photoSearch giant Google Inc. 's GOOGL video-sharing site YouTube has entered into a partnership with content creator, DreamWorks Animation's DWA AwesomenessTV to roll out several feature films on the website over the coming two years. The films will be premiered worldwide on YouTube before they are available elsewhere. Google expects to release the first film this fall.
AwesomenessTV, which was acquired by DreamWorks in May 2013, is a premier digital content developer and distributor. It boasts significant Internet offerings and generates revenues primarily from online advertising and distribution of content through media channels such as theatrical, home entertainment and television.
Also it is partnering with top four content creators to showcase their next big original series on YouTube. It will the new season of Prank vs Prank, a murder mystery reality show starring online star Joey Graceffa, comedy show Smosh and another one by Fine Brothers, creators of the popular kids/teens/elders react series.
YouTube, which celebrated its 10th anniversary last week, is the world's leading online video sharing platform. Despite being around since 2005 and enjoying strong viewership, the site has still not disclosed any profit. Google has said that the business is in growth mode and investments would continue in the foreseeable future. In fact, YouTube TrueView ads did particularly well in the just-reported quarter growing as a percentage of its total business and the service also expanded to new geographies.
YouTube has thus far been a site for home-made videos, but the company is now going for premium content to attract higher ad prices and also perhaps a streaming/subscription service. Earlier this year, it secured National Football League game clips, interviews and more. YouTube also released a service called the YouTube Kids app. This app is designed especially for children as the search giant is on a lookout for a new audience.
These moves will help the online-video unit, which attracts more than a billion users every month, far exceeding the likes of Netflix NFLX and Amazon AMZN , lure more audience, which in turn will boost its advertising revenues and margins.
Google currently has a Zacks Rank #4 (Sell).
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