The budding comedians and quirky entertainers who helped YouTube earn $1.65 billion from its sale to Google Inc. are about to start getting their own paydays.
YouTube said Friday that it soon would start rewarding its top-drawing performers with better promotion and a cut of the revenue it generates from placing banner ads around the online videos.
YouTube isn't the first online video company to share money with its contributors. But the deal marks the first time that the likes of lonelygirl15, LisaNova, Renetto and the comedy duo Smosh will receive the same treatment that YouTube gives more-established entertainment industry players, such as CBS Corp. and the BBC.
"We hope this is the beginning of the recognition that a lot of the content created by the members of the YouTube community has as much merit as content contributed by our professional partners," said Jamie Byrne, head of product marketing at YouTube.
The announcement came as San Bruno, Calif.-based YouTube fights with some traditional media companies that see the website as a source of pirated TV shows and video clips.
The Football Assn. Premier League, an English soccer league, and Bourne Co., an independent music publisher, on Friday sued Google in a New York federal court, alleging that game highlights and songs such as "Inka Dinka Doo" had been posted without permission. They are seeking class-action status for their lawsuit.
In response, Google said that the plaintiffs misunderstood copyright law and that the suit threatened free expression on the Internet.
New York-based Viacom Inc. also has sued Mountain View, Calif.-based Google, alleging copyright infringement. The media giant said shows from MTV, Comedy Central and its other cable channels had appeared on the site without permission.
"Without producers of original content, they are just a pirate site," said Forrester Research analyst Josh Bernoff.Plenty of professionals have given YouTube permission to post their videos. The website says it has deals with more than 1,000 content creators, including CBS for highlights from the March Madness college basketball tournament and "The Late Show With David Letterman."
But in many ways the partnerships announced Friday signal a return to YouTube's roots.
The site was created in 2005 as a forum for amateur videographers. By providing financial incentives, YouTube hopes to ensure that the most polished of them continue to create videos that keep viewers coming back.
