YouTube's video profile is set to expand, following a deal with the William Morris Agency. At its core, the agreement would see more content that doesn't make it to prime time television or movie screens released on YouTube. Some frustration has developed with William Morris, along with YouTube, over a lack of newer and fresher content available. Even with ad-supported videos, big media giants have been reluctant to release much on the video sharing site, for a variety of reasons.
The benefit for YouTube is to get more "premium" content, which allows them to ultimately generate more advertising revenue. Ad-generated revenue on YouTube is lower than what Google expects, primarily because the majority of videos on YouTube are submitted by individuals, not by companies. This William Morris deal could result in "made for YouTube" videos with professional actors, an attractive beacon for the service and a way for money to be generated through ads. This is all around good news for YouTube, and I expect that we'll see only more of this in the future, though hopefully not at the expense of what made the site popular in the first place: user generated content.