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Disney and YouTube Partner for Video Content and Distribution

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YouTube and Disney announced a partnership today that combines the unparalleled online video reach of YouTube with Disney's beloved stable of content.

Under the agreement, Disney Interactive Media and YouTube will jointly finance $10 million to $15 million of original online video content, the New York Times reported. Disney will create to programming, which will then be shown on both Disney.com and a YouTube channel. The YouTube channel will also include hand-selected amateur videos chosen from those uploaded to YouTube.

"Today, we announced a new deal with Disney to bring more family-friendly entertainment to YouTube. The deal includes existing shows from Disney channels and new, original short-form programming produced by Disney to be made available across YouTube and Disney.com. This content will be released early next year and will start in the U.S. and then roll out internationally in the months that follow," said a YouTube spokesperson, when asked for comment. 

Both parties benefit from the agreement, which gives YouTube the premium original content it needs if it's going to grow from being a user-generated content diversion to something more engaging. Disney is piggybacking off the largest video site by far to win some eyeballs it couldn't have gotten on its own.

The Times notes that Disney Interactive has lost over $300 million in the previous year, and is desperate to create revenue from its online originals.

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