Disney and YouTube Join Forces to Create a Media Empire
Global moneymaking heavyweights, Google's YouTube and Disney Interactive, are joining forces to create web video entertainment for family audiences slated to launch early 2012.
In a joint statement, the companies said they plan to have "video destinations" featuring family programming from the two companies on Disney.com and Youtube.com.
Disney is reportedly investing $10 million, and YouTube is investing $15 million. YouTube has 800 million users worldwide and is becoming the world's leading media entertainment platform, garnering more views then most televisions.
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Also competing against mobile devices, Disney is looking to capitalize on new media platforms outside of the screen to further expand their reach.
"With online video consumption exploding and YouTube at the center of that trend, we see an opportunity for Disney Interactive and YouTube to bring Disney's legacy of storytelling to a new generation of families and Disney enthusiasts on the platforms they prefer,” said Jimmy Pitaro, the CO-president of Disney Interactive, in a statement.
Another aspect of the joint website will allow amateur videos to be uploaded through torrent. With Disney losing over $300 million in its last four quarters, the leadership team of the company is looking for these new videos to make them money.
The New York Times reported Disney's website traffic went from 17.9 million viewers in June to 12.7 million in September.
“It’s imperative to go where our audience is,” Pitaro to the Times.
He also said it's important to bring “Disney’s legacy of storytelling to a new generation of families and Disney enthusiasts on the platforms they prefer.”
The two companies will benefit each other because of the markets they inhabit. Disney will help YouTube become more family friendly and accessible for younger kids while Disney will gain YouTube’s massive audience and draw in more non-child viewers.
“It’s an acknowledgment that we want to work with the best brands and, yes, we expect this partnership to attract new advertisers,” said Robert Kyncl, YouTube’s global head for content partnerships, on each company’s shortcomings.
"Where's My Water?" is the first project to be launched by the joint collaboration, and is slated for a February release.
The new video series will be based on a mobile game of the same name, with the main character being a crocodile named Swampy.
