While the norm of offering movies for sale through YouTube by Google has been an ongoing one for many years, Youtube has now started to offer certain movies for free with ad- support since last month.
According to Rohit Dhawan, the director of product management at YouTube, the decision taken by YouTube to offer free movies with ad- support is in accordance with the user demand.
However, what cannot be ignored is that even with this free format, the apparent opportunity of earning revenue must not have escaped YouTube. Additionally this will also replicate the much traditional business model for advertisers to place their ads for the captive audience and movie studios who would like to split the revenue earned if they allow their movies for the format.
A total of 100 movies including Rocky, Legally Blonde, Agent Cody Banks, Terminator etc are available with advertisements. Based on the personal data of the individual consumers Google has in record, there is immense potential for both getting users to watch adverts during a movie and to ascertain target individual viewers for relevant adverts. According to latest estimates almost 20% YouTube users watch it through smart TVs.