Disney and YouTube Create Partnership For Web Dominance

The Walt Disney Company (commonly referred to as Disney) is the largest media firm in the world in terms of revenue and YouTube is the largest video sharing website have now partnered together to create dominance on the Internet.  To gain this dominance they spent a combined $10 to $15 million on a video series they created to in turn help involve children more in the online world.  This new channel is set to launch in the New Year (2012), as Disney Interactive Media and Google (owners of YouTube) officially announced their plan on November 7th, 2011 by means of a press release.

Disney feels that this move will help them reach out to the younger generations as they are losing their hold on the younger children, who are instead running to the Internet to watch videos on sites like YouTube.  Over the past years, Disney Interactive Media Group has seen their losses grow to $300 million in only their last 4 quarters, which was a tell tale sign for them to make some changes.  Not to mention that investors were putting pressure on Disney to make some changes.

Now Disney is working on recreating their company’s brand in order to connect more with children who are looking for videos to stream online.  By creating a partnership deal with YouTube it will help them reach their target market because they can use the cooler YouTube as an intermediary to stream their entertainment.

“It’s imperative to go where our audience is,” says the co-president of Disney Interactive, James Pitaro.  In addition he added their strategy is to “bring Disney’s legacy of storytelling to a new generation of families and Disney enthusiasts on the platforms they prefer.”

Google’s deal with Disney is not only the  partnership they have created, as they have reached deals with the likes of Jay-Z, Madonna, Shaquille O’Neal, Red Bull, and The Wall Street Journal to name a few of the many new channels coming to YouTube.  YouTube has decided to allocate about $5 million per channel in order to create high quality and original media.

This is only the beginning of a new race to become the number one content provider in the world, while being able to reach the necessary target markets in a society that is becoming more fragmented than ever.



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