Google Inc. (GOOGL)’s agreement to show Sony Corp.’s “The Interview,” gives its YouTube video-streaming website a chance to show that it’s more than just a destination for funny cat videos.
Sony Pictures said the controversial movie is available online today on Google Play and YouTube Movies for $5.99 to rent and $14.99 to own. Microsoft Corp.’s Xbox video console and http://ift.tt/1vbTa6z, a website sponsored by Sony, will also show the comedy.
Google, which runs the most popular Internet-search engine, has been bolstering its premium content to compete with the music and video library offered by Apple Inc. Google is also seeking to keep users coming to its Web properties as digital rivals such as Netflix Inc. and Hulu LLC draw more Internet traffic. By debuting “The Interview,” Google now has the chance to prove to a wider audience that it can sell premium content, according to James McQuivey, an analyst at Forrester Research Inc.
“Google has needed a way to show love to studios for a long time and this will do it,” McQuivey said in an interview. “Most people don’t think of” YouTube “as a distribution platform for feature film. It might get a film up there after it’s been out for a year or two, so this is a good move.”
Photographer: Kiyoshi Ota/Bloomberg With subscription services, Google Inc.’s YouTube joins Netflix Inc., Hulu LLC and Amazon.com in offering online entertainment that bypasses traditional cable and satellite pay-television. Close
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With subscription services, Google Inc.’s YouTube joins Netflix Inc., Hulu LLC and Amazon.com in offering online entertainment that bypasses traditional cable and satellite pay-television.
The online rollout marks the highest-profile feature film to debut on the Internet and follows Sony’s last-minute efforts to get the movie out. Hackers linked to North Korea launched a cyber-attack on the studio’s computers last month and threatened violence if the film -- a satire starring Seth Rogen and James Franco with a plot to kill North Korean leader Kim Jong Un -- was shown. In response to the warning, major theater chains canceled the film’s debut tomorrow, on Christmas Day.
On Demand
The Web debut of “The Interview” may be what’s needed for film-watchers such as Debbie Reed, 62, in Newton, New Jersey, to give YouTube’s pay service a try. The retiree said she’s more accustomed to watching YouTube videos for knitting and other crafts.
“I didn’t know you can do it from YouTube -- it’s usually Netflix or Apple,” Reed said. “It’ll be interesting to find out what all of this hype has been about.”
The unconventional rollout of the “The Interview” gives on-demand video its first big test. Typically such services have been reserved for smaller films, such as independent movies that may not have enough widespread appeal to warrant a big marketing budget, according to Paul Dergarabedian, a senior media analyst at Rentrak, a market-research firm that tracks the movie business.
Photographer: Andrew Harrer/Bloomberg In court, Viacom Inc. had argued that YouTube used unauthorized copyrighted material to draw visitors to the website and make it more attractive to potential buyers. Close
In court, Viacom Inc. had argued that YouTube used unauthorized copyrighted material to... Read More
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In court, Viacom Inc. had argued that YouTube used unauthorized copyrighted material to draw visitors to the website and make it more attractive to potential buyers.
Free Speech
Previously, low-profile releases such as 2011’s “Margin Call” which starred Kevin Spacey, and 2012’s “Arbitrage” and “Bachelorette” were released simultaneously via video-on-demand services as in the movie theaters.
“We’ve seen some successes for VOD on the same day as the theatrical release, but it’s always been for smaller movies,” Dergarabedian said.
While Google may see increased attention for its video services, it’s also another example of the Mountain View, California-based company taking a stand on political grounds.
“After discussing all the issues, Sony and Google agreed that we could not sit on the sidelines and allow a handful of people to determine the limits of free speech in another country,” David Drummond, Google’s senior vice president of corporate development and chief legal officer, wrote in a blog post.
More than 6 billion hours of video are watched on the service each month, and YouTube reaches more U.S. adults of ages 18-34 each month, according to the company’s website. Google bought YouTube in 2006 for $1.3 billion, seeking to add more user-generated video content.
“Knowing Google’s mantra regarding access to information, I would assume the primary motivator is providing the public with an opportunity to see the film,” Colin Sebastian, an analyst at Robert W Baird & Co. in San Francisco, said.
To contact the reporters on this story: Tim Higgins in San Francisco at thiggins21@bloomberg.net; Peter Burrows in San Francisco at pburrows@bloomberg.net; Jack Clark in San Francisco at jclark185@bloomberg.net
To contact the editors responsible for this story: Reed Stevenson at rstevenson15@bloomberg.net Jillian Ward
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