Details from Call on NBC and News Corp.'s Video Joint Venture

Heather Green

From the conference call with Jeff Zucker from NBC Universal and Peter Chernin from News Corporation:

What is the JV? It's about premium content, but will will have a whole range of content, including movies, short form content, clips. Folks will be able to share this content on other sites, as YouTube does. It will accept user generated content, but that's not the main focus.

Revenue model? The service will have its own ad sales that will sell the ads across the distribution partners. This is key because then the Hollywood players keep control of what's really important to them: making money. It's clear to me that letting their content be distributed widely doesn't really matter if they can make money on it. Beyond paying for overhead, the revenues will go back to the companies providing the content and a portion will go to the distribution partners.

When will the show be available? It will be on the same windowing that currently exist on their own sites. I.E. As soon as its show, it can be up. So no real delay, unless the content company decides otherwise.

Control: We want it to be Web 2.0 People will be able to do what they want with the content, mash it up, mix it up.

Directly from the call:

What about YouTube and pulling down content? Zucker, obviously we're in discussions, and hopefully will come to a resolution that's satisfactory for both companies. Chernin, We wanted to provide consumers and content a way to get our content out there in a legitimate way.

How long been working on this? Zucker: It's been a long road. What brought it together in the last week was that the distribution partners saw real value to this. Chernin: There has been absolute unwavering committment to this between NBC and Newscorp. We're completely aligned in our goals, our interest in getting this done has been steadfast. (Ok, now a joke) We're thinking of merging primetime it went so well.. Zucker NBC will take that deal.

Why would other content companies join you?
Zucker Lot of distribution, a good revenue share, and content protection.
Chernin This will be run for the benefit of consumers, won't see us push this, and the consumers will decide what they want to watch.

Chernin It's great to be able to control your own destinty, it's a great things as comapnies to be able to chart our own future

Zucker, in just the last few months, we have learned a lot from our own site and what the consumer is willing to experience. We have been shocked at the willingness of the consumer to sit through the shows with ads on them, and that leads us to know what a valuabel experience it is for consumers and advertisers.

Why confident you can control the content?
Zucker The hallmark of the unprecedented agreement on behalf of the distribution partners to protect this content.

Question on user generated aspect of things. It's going to be just mashups of copyright content, you can have the proverbial chinese kids lipsynching to backstreet boys?
Zucker Yes, there will be user generated content, but we think that main focus will be on the premium content.

Can I put this on my own site?
Zucker The great thing about this is that the show comes with our player and the player has ads with it.

Also, quick impression, I am hearing "web 2.0" but also lots of "consumer" "IP protection", "premium media." Ok, so lots of all old style language, but I guess it shows their background.

Before it's here, it's on the Bloomberg Terminal.