YouTube is now showing free Hollywood movies supported by Ads. According to an AdAge report, YouTube started showing the movies for the first time last month.
Hitherto, YouTube was selling movies and shows. Consumers were able to buy the latest movies and prime-TV programs and there was never a free option to watch the movies, even with free ads.
According to Rohit Dhawan, director of product management at YouTube, “We saw this opportunity based on user demand, beyond just offering paid movies. Can we do ad-supported movies, free to the user? It also presents a nice opportunity for advertisers.”
There are only about 100 movies available for free and they include “The Terminator”, “Legally Blonde” among others. However Dhawan says the selection will be expanding
YouTube serves ads to the movies from its usual pool of advertising demand that courses through the platform to its 1.9 billion monthly active users.
Eventually, there could be a way for advertisers to pay to sponsor individual movies, giving users complimentary views and exclusive screenings, Dhawan says. However, that all pretty much depends on how studios evolve their businesses to account for these new digital streaming windows that are opening up. Movies typically go to theaters, then DVD, then TV, and the place for digital is still up in the air.
Dhawan would not disclose the terms of YouTube’s deals with studios or how it splits ad revenue with them.
