Russian publishing group News Media Rus has found that it can make more money by selling its video content than it can by running online advertising. The group, which also owns daily newspaper Zhizn, newssite Life News and business outlet Marker.ru, announced that all of its images and video content will now used by TV channel NTV, Lenta.ru wrote Monday. According to Vedomosti, the venture began on Sept. 1, and the agreement between the publisher and TV channel will last for a year, with an extension possibilities.

"...it turned out that the direct sale of video can bring more revenue than the promotion of a site and then publish it on its Internet advertising," Sostav.ru reported. Previously, the publisher let news platforms use its content for free, provided that they cite their sources. News Media Rus Operation Director Ashot Gabrelyanov revealed to Vedomosti that on average around 30 video clips were used by TV channels such as REN TV, NTV and government-operated Perviy.

At first, the firm was gathering content for Life News and transmitting them to TV channels in order to promote the site, WebPlanet.ru informed. However, it was predicted that video content could offer significantly higher earnings than Web-based advertising on the site.

Last month, News Media Rus pitched the idea to TV channels, informing them of the decision to back away from free use of its visual content. NTV replied and a contract was soon signed between the two parties. Although details are not available, Gabrelyanov expected around a sum of RUB 12 million (US$388,000) per month, according to WebPlaneta.ru. Vedomosti added that Gabrelyanov said the deal was financially satisfying for both sides.

The largely scandal-focused content of Life News was better suited for NTV than any other channel, said an unnamed member of a TV company. According to the company website, NTV is watched by 84 percent of the country's population, which amounts to 125 million viewers, and has correspondents stationed in Russia as well as New York, Paris, Berlin and the near East. For its daily news section, NTV compiles around 20 different "original" news stories, the site mentioned.

Image from Lenta.ru