Lionsgate Entertainment signs revenue-sharing deal with YouTube

Lions Gate Entertainment has signed a revenue-sharing deal with Google's YouTube, according to Google CEO Eric Schmidt. Apparently, not everyone in Hollywood hates Google.

Lions Gate Entertainment, the Hollywood studio that released movies like Dirty Dancing, American Psycho, Hotel Rwanda and others, wants to partner with YouTube in a revenue-sharing deal. Eric Schmidt made this announcement at the Madison & Vine conference in Los Angeles on Wednesday, according to the Hollywood reporter and confirmed by Lionsgate. Lionsgate will create a separate channel on YouTube and post its TV and film content with ads. Cnet.com believes if this partnership is successful, other Hollywood studios may partner with YouTube except for Viacom, who has an ongoing lawsuit against Google. This deal is a blow for YouTube’s rival, Hulu. But unlike Hulu, YouTube has a massive global audience and it can be watched almost everywhere in the computer, mobile and smartphone devices. Lionsgate will be able to reach more viewers with YouTube. YouTube is still trying to find ways to generate ad revenue but its main focus is to give a better user experience.