YouTube & Sony Pictures In Talks

Sony Pictures and YouTube are currently in talks over a partnership and licensing rights to some of Sony’s feature length films. Sony’s Crackle video service has apparently lost too much ground against NBC Universal’s Hulu. CNN has a great article on the subject, including this nugget:

There’s also the question of what the studios intend to do with the traditional distribution model. Hollywood has long had agreements in place to release films through a complex assortment of channels, including theatrical release, DVD sales, and cable, premium, and broadcast outlets. For example, film-industry sources say the money Hollywood earns from the Web is a trickle compared with the ocean of cash it receives each year from cable providers.

Nonetheless, more and more people are canceling their cable subscriptions and turning to the Web for entertainment. Even execs from the cable companies have acknowledged this. Last week, after Disney announced the agreement with YouTube, I asked Jordan Hoffner, YouTube’s chief of content partnerships, whether YouTube, Hulu, and the other Web video services can convince Hollywood to wean itself off these other distribution channels.

For more info, check out the article.