Youtube founders Chad Hurley, left, and Steve Chen
It's official! Youtube is in the web series financing business!
The #3 most visited site in the world (per Alexa ranking) has announced the launch of what it dubbed the Youtube Grant Program, that will pump five million dollars into the production and marketing budgets of a small group of Youtube partners, some of whom are web series creators.
The deal in simpler terms will serve as a loan against the partner's future Youtube revenue share, meaning its an advance that must be repaid from revenue from embedded advertising that Youtube will place in your videos, if you're selected for the program.
Youtube made the groundbreaking announcement on its official blog July 9, 2010.
Check out the full release below:
Investing in the Future of Video: YouTube Announces Partner Grant Program
The YouTube ecosystem is vibrant and growing fast. We have over 10,000 partners, and 94 of Ad Age’s top 100 advertisers have run campaigns on YouTube and the Google Display Network. We’ve made great progress in the last five years. But we think we can do better. That’s why today we are announcing the YouTube Partner Grants program that will invest five million dollars across select new and emerging YouTube partners. Our goal is to catalyze the creation of new ideas and production models from some of our most innovative and original content partners for the benefit and advancement of the entire industry.
The idea behind YouTube Partner Grants is fairly simple. We’ve been amazed by the creativity and resourcefulness of many of our partners. Some, operating on shoe string budgets, have been able to produce incredible videos, generate substantial revenues and command an audience that rivals that of network television. This new creative class often manages 360 degrees of their business operations, from the writing filming and producing of their content to the marketing, post-production and distribution of their videos. Despite their success, many partners lack the resources and deep financial backing available to studio-backed production houses. The goal of YouTube Partner Grants is to act as a catalyst by infusing additional funds into the production budgets of a small group of YouTube partners who are at the forefront of innovation. Funds from YouTube Partner Grants will serve as an advance against the partner's future YouTube revenue share. This additional funding can allow partners to invest in better cameras, achieve higher production quality, expand their marketing efforts, expand their staff, or just hire more talent. Anything that will help them evolve their art, business, and ultimately the entire creator community. We look at this as an investment that will bring an even richer body of content for our users and advertisers and raise the creative bar for online video.
Here’s how it works:
YouTube is identifying eligible partners based on factors such as video views, subscribers, growth rate, audience engagement and production expertise
Selected partners are contacted by YouTube and invited to submit a Grant proposal
Proposals are evaluated by YouTube based on signals which include projected performance, distribution plan, marketing plan, cost requirements and appeal to advertisers
If approved, funds are transferred to the partner so they can get started on their project
Youtube Partner Grants represents another step forward in the evolution of both video and YouTube. Our hope is that through these investments we’ll help nurture talent and bring more great videos to YouTube for all of you to enjoy.