Tuesday, August 9, 2011, 12:08 PM ET|Posted by Will RichmondMOVIECLIPS.com has struck a deal with YouTube so that 20,000+ licensed HD movie clips will now become available in the "Movie Extras" section of YouTube movies, as well as on the MOVIECLIPS YouTube channel. In addition, MOVIECLIPS is announcing a $7 million Series B financing led by MK Capital and including prior investors.
The YouTube distribution deal is significant in giving MOVIECLIPS' library broader exposure and monetization potential than it has had. MOVIECLIPS has struck licensing deals with six Hollywood studios. MOVIECLIPS uses its technology to generate up to 1,000 points of metadata, so that users can quickly find the best of Hollywood's most memorable moments.
While YouTube's movie rental initiatives have yet to bear significant fruit, the clips' inclusion in YouTube guarantees lots of new visibility, which also helps studios highlight their archives. And the deal certainly gives MOVIECLIPS more credibility to do follow-on deals with other bigger online movie distributors (e.g. Netflix, Amazon, iTunes, VUDU, pay-TV portals, etc.)
For YouTube, the clips will be helpful in providing a more comprehensive user experience, as well as driving more views to premium content that can be monetized. Studios are among the biggest advertisers on YouTube, and on any given day the prominent "masthead" ad on YouTube's home page will be promoting the latest Hollywood blockbuster. The ability to blend MOVIECLIPS content seamlessly with ads and other movie-related content means an even higher-impact experience. MOVIECLIPS also lets users interact with the clips, mashing them up, sharing them and embedding them in 3rd-party sites.