Disney and YouTube are set to announce a content partnership worth $10 million to $15 million, The New York Times reports.
Under the terms of the agreement, YouTube will invest millions of dollars on an original video series produced by Disney and distributed exclusively through a new co-branded channel on both YouTube and Disney.com, according to the Times.
Disney has had a couple of bad quarters, and it’s hoping to re-capture its audience through new distribution channels. It wants, as co-president of Disney Interactive James Pitaro told the Times, to “go where (its) audience is.”
The deal also makes sense for YouTube, which is always on the lookout for more original, quality content and strong brand partners. However, Robert Kyncl, YouTube’s global head for content partnerships, emphasized that YouTube will be a neutral distributor and is not planning to go into the production business.
YouTube recently announced a big push to bring more premium content to the site, with a slew of new video channels. Google has reportedly spent $100 million on the deals for the new channels, and its partners include celebrities such as Madonna and Ashton Kutcher, as well as media companies like The Wall Street Journal, The Onion, SB Nation and Demand Media.