After more than six months of Google's launch of YouTube — its video-sharing platform — in India, the local content companies are finally embracing the medium with much zeal.

As Google gives more freedom to content firms to 'brand' their videos on their respective channels, some old-world movie producers and distributors such as Rajshri Films, Shemaroo Entertainment and Eros Pictures are finally warming up to the idea.

They have put in place special teams to develop content to be put on YouTube and other sites on the Internet.

Eros Pictures, listed on the London Stock Exchange's Alternate Investment Market (AIM), has set up a unit of around 25 people to make content associated with its movies.

Biren Ghose, executive director, Eros Pictures, says, "We look at our web offerings as another channel, with its own programming strategy."

The content, which includes interviews with actors of the movies it has produced, Bollywood event reports, making-of-the-movie episodes, trailers etc, are then put up on the company's website and on its channels on third-party websites such as youtube.com.

Like Eros, other film producing and distributing companies such as Shemaroo Entertainment and Rajshri Films are also on YouTube.

They too have their own 'channels' on the website offering clips, songs, trailers etc from their wide array of content.

Jai Maroo, director, Shemaroo Entertainment, says his company has started to take the medium seriously only in the past six months. "The main reason was the partnership programme that Google offered to us," he says.

According to Maroo, the cost of acquiring content rights and then reformatting and making it available on sites such as YouTube are much higher than the returns on it.

"Google has given us the flexibility to customise and promote our channels... They are also experimenting with advertising on it, though the revenues are not very exciting for us now," Maroo adds.

In fact, YouTube is yet to make enough money for its owner Google to cover even its cost of operations.

Google paid $1.65 billion to acquire the site in 2006, but the company has never been able to figure out how to make money out of it due to the difficulty in putting targeted ads into videos without irritating the viewer.

However, over the last one year, it has sought to co-opt traditional content owners as well and has started experimenting with different forms of advertising for the short videos.

Now, many YouTube videos come with text overlays or sometimes even a full ad at the beginning or end of the video.

However, Shailesh Rao, managing director — India, Google, refused to give out details of the company's monetising plan. "We are making decent amounts of money from it," he said.

Sreejiraj Eluvangal/ DNA-Daily News & Analysis Source: 3D Syndication