YouTube is on the verge of signing a deal with major Hollywood talent agency William Morris — a move that would add more premium content to a site known for primarily amateur material.
A statement released Wednesday confirms YouTube's interest in becoming a hub for premium video and possibly tapping the financial rewards of online video screening, writes The New York Times.
William Morris represents a number of well-known celebrities, including actors Denzel Washington and Russell Crowe, producers J.J. Abrams and Michael Bay. It reportedly also signed former Secretary of State Condoleezza Rice as a client.
The deal between itself and YouTube would allow artists to create content for the web and give them a stake in ad revenue.
YouTube currently does not place ads next to user-generated videos. The company profits from only a fraction of the videos on the site, most of which come from partners like CBS and Universal Music.
Late last year it inked a liaison with PBS to syndicate Sesame Street clips and segments. It recently also broadened an ecommerce effort that enables record labels to profit from "illegally" uploaded music videos, or user material featuring copyrighted songs, by giving viewers a chance to buy the featured music.
Sources from YouTube and William Morris are not authorized to speak of the deal, but several under cover of anonymity described it as YouTube's most sweeping attempt to add professionally produced content to its website, the Times reported.
Google-owned YouTube is primarily motivated by the financial potential of its high-traffic video portal - and to reach that potential, it needs premium content, Fred Davis, a senior partner at entertainment law firm Davis, Shapiro, Lewit & Hayes, was quoted as saying.
YouTube's audience was estimated by comScore to be about 100 million US viewers in October '08.
The shift toward premium content could boost the site's reputation as a serious entertainment source in the digital media sphere. In November, YouTube sponsored a live concert. Prominent filmmaker Wayne Wang also released his latest film on YouTube instead of via traditional channels.
A Screen Digest survey projects Hulu, whose content is primarily professional, will equal YouTube's profit sometime this year and likely exceed it.
YouTube is already available in numerous countries; Hulu currently only serves the United States.
