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In what could be viewed as a direct attack on Hulu, YouTube is going to allow advertisements on its major partners YouTube channels. It's already been doing this with some partners, such as CBS. If YouTube's copyright detection determines something is also a CBS or other partner's program, it will insert their ads there too. Quite fascinating.

The revenue from these ads will be split with the partners, regardless of who actually sells the ads.

Will advertisements turn you away from watching a TV show on YouTube? Or, is that a small price to pay for a free service?  -- Leslie Shapiro

Ars Technica