Disney in talks to put content on YouTube

Disney could stream full-length episodes from its ABC TV network on YouTube as part of a multi-year deal currently in discussion with YouTube-owner Google. Disney may pursue the deal in place of a VoD agreement with Hulu, reports paidContent.

Disney would reportedly receive a pay-for-play fee for content watched through YouTube. Disney CEO Bob Iger and Google chairman and CEO Eric Schmidt have reportedly held talks about a deal, but the negotiations are said to be at a relatively early stage.

Separate discussions about YouTube hosting clips from ESPN, ABC and other Disney-owned networks are at a more advanced stage, insiders claim. Ad revenue from this deal would be split between the two firms, with Disney controlling the ad inventory.

These clips may appear in a proprietary video player, embedded into YouTube's site. This would be similar to a recent agreement between CBS Sports and YouTube. The video site now shows NCAA basketball clips using Microsoft's Flash-rivalling Silverlight video platform.

News of the deals follows reports from last week that claim Disney is also in talks to license ABC content to Hulu. The company is reportedly negotiating for an equity stake in Hulu, which is co-owned by NBC Universal and News Corp.

According to comScore data, Hulu grew 33% between January and February 2009, leapfrogging both Microsoft and Viacom to finish fourth in the US video-streaming rankings in terms of both streams and users. However, its market share pales in comparison to YouTube, which is still the clear market leader, accounting for 41% of all videos streamed in the US in February.