In the past, AOL chief executive Tim Armstrong has been against putting the company’s content on the world’s largest streaming video site. AOL by itself ranks among the top 10 highest trafficked video producers, meaning it’s more than capable of generating revenue on its own. However, the new partnership with YouTube should prove very beneficial.
Under the agreement, AOL will be launching 22 branded YouTube channels for its various properties. Some of those include channels for TechCrunch, Huffington Post, and Moviefone. The terms of the deal allow AOL to gain a cut of the revenue from each channel, much like YouTube does with various music labels and television properties. AOL will get to customize its channels with backgrounds and other promotional materials as well as determine exactly how (and via which devices) viewers are able to watch its content.
My guess is that AOL finally realized making its video content available on YouTube wouldn’t be taking views away from its own websites. YouTube is just a giant that commands a huge organic audience. By signing this agreement, AOL is likely to bring in more revenue on its videos. That’s a big win for the company, which previously said one of its biggest areas of growth was in video content.