MGM inks deal with YouTube for movie downloading service

YouTube’s bid to compete with television-based websites took another step closer when it signed a film deal with MGM recently - reports Independent.ie.

The video-sharing site has been given the green light to upload Metro-Goldwyn-Mayer's finest moments, in a deal that will delight youtubers worldwide.

The deal should boost both partners, helping revenue at the studio, and improving advertising options for youtube.

A new channel called Impact will be launched as a result – giving users direct access to films, MGM shows and trailers.

"I think it will grow into a nice little business," said Jim Packer, co-president of MGM Worldwide Television.

Youtube has almost 300m users globally now, making it an attractive pairing for any company wanting an online presence. Its ability to maintain a high quality service, and an acclaimed standard of output means it has been courted by a number of firms wanting to tap into its reputation.

The trick is that when you download a film it may be interrupted by advertising – which is how youtube will make money out of the deal.

While the films are only being launched in the US at first, there are plans to roll out the service in Europe eventually.

Star Trek, Beverly Hills 90210 and Oprah are all likely to be included in the new deal and the list is set to grow over the coming months as additional deals are put in place.

YouTube’s new Impact channel will be able to broadcast clips from films like Rocky, Ronin, Legally Blonde, and The Magnificent Seven and has the full rights to Lone Wolfe McQuade and Bulletproof Monk, as well as those starring the actor Chuck Norris. However, new releases will take longer to reach an online audience, and the James Bond films are unlikely to make it to the medium for some time yet.

It is hoped the channels will be seen over here within two to three years.

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