Disney and YouTube lock-in a video deal

Veteran brand name for children's entertainment worldwide, and a media conglomerate, Walt Disney is close to cementing a deal with popular destination for online videos, YouTube. The deal, according to a report on The New York Times, would see the media biggies come together and work towards powering their collective web position. Both Walt Disney and YouTube have been scrambling to get themselves web dominance, and now with a view to achieving that goal they will push in $10 - $15 million in bringing out an original video series. Walt Disney will be producing these videos and will distribute via a co-branded channel on Disney and YouTube. 

Trying its magic online

Disney, according to the report has been trying to make its platform a viable destination to view online videos for its primary audience - kids. However, it seems to be having a tough time doing that, resulting it falling profits and declining interests. Disney, therefore, as the report quotes - Will go where its audience is. YouTube, on the other hand, seems to have managed just fine in this respect, but still needs the confidence of the parents who seem unsure to leave their kids no holds barred on YouTube owing to the mixed bag of videos in there. With Disney coming onboard, YouTube reportedly expects a wider spectrum of audiences coming in. 

Disney plans to begin this fresh new venture with its existing resources.  As a part of this deal, Disney will be seen splitting its revenue with YouTube and will also sell its advertising inventory.