The biggest video sharing website with user generated content, YouTube, was created in 2005 by three former PayPal employees. It was acquired by Google in November 2006, for $1.65 billion, in Google stock. Among people posting family videos, their favorite songs with collages of pictures or what stunts they pulled in their backyard, users and guests could see movies and TV show episodes, broken down in several short installments. The quality also depended on what the user uploaded the video from and its original form.

In order to gain more revenue, Google and YouTube have decided to also stream full-length television programs. The first company they shook hands with is CBS, network from which they will be streaming the most long-living show in television history – “The Young and the Restless,” the sequel to “Beverly Hills, 902190” called simply “90210” and recent hit shows “Dexter” and “Californication”.

YouTube officials also stated they were negotiating with other possible partners, but they didn’t elaborate on the subject.

Google and YouTube will sell commercial slots for ads that will air before, during and after the full episodes. For now, as CBS are the only official content provider, they are the only ones which will be able to sell the ads, giving YouTube their share of the profit. YouTube was reluctant to use this type of format because they thought increasingly fewer viewers would be interested to view the shorter clips they provided.

However, different types of marketers were attracted to both kinds of YouTube content, user generated and the more predictable network generated. Other websites have already taken up this format, the most prominent examples being Disney’s ABC.com, and Hulu.com, owned by Fox and NBC, and they sell commercial space for massive rates. Another effort made by YouTube to maximize revenue involves music. On videos provided by YouTube partners EMI and Universal Music, users can click a link that takes them to iTunes or Amazon.com, where they can purchase the song. Part of those revenues, obviously, go to YouTube.