Brightcove is doing the same kind of deals.  The easy part for YouTube/Brightcove is the distribution and monetization technology.  The hard part is promoting all of these partners.  As they add more and more channels how do they direct meaningful traffic to all of them?  The Sundance channel got 2 million streams for it’s library which is BIG.  At a $25 CPM (which is beyond what YouTube is currently monetizing at) we’re talking about $50k/month, split 50/50 between YouTube and it’s partner it’s $25k for the Sundance Channel.  The challenge for YouTube is how do they exponentially increase exposure for every partners content so they become a meaningful source of revenue for those partners?  Right now all these deals are non-exclusive for precisely that reason.

Exactly.  And what is going to happen to the smaller independent producers?  They are going to get squeezed and pushed into the “bargin bin” of Youtube.  They will not be promoted as heavily as the larger, more mainstream content.

This is why http://www.hungryflix.com is focused soley on independent producers and filmmakers.  We hope to become a top destination for great indie content.