Google, YouTube Notch Deals, Make a Deal of Their Own
On Monday, Google announced two separate deals with Warner Music Group and Sony BMG Music that will allow Google Video users to view music videos from both labels at no charge, thanks to Google’s ad-supported model. The revenue derived from the ads will be shared by Google with WMG and Sony BMG.
Some videos made available by WMG may be available for download on Google Video for $1.99.
The deals will begin this month, and do not mention any of the technical conditions or copyright supervision that YouTube’s deal with WMG conveyed.
Along with music videos from WMG and Sony BMG’s entire libraries, Google Video users will be able to watch artist interviews, behind-the-scenes clips, and other artist-related videos.
What about copyright issues?
“It’s deep-pockets Google, so Warner is less concerned about copyright than they were with YouTube,” said Dave Gardy, chief executive of TV Worldwide. “They could figure out any copyright ramifications later. Follow-on distribution and support from someone like Google are always going to be there.”
WMG and Sony BMG will look to profit by allowing their content to be used by AdSense advertisers and affiliates.
YouTube also made its own announcements on Monday, showing off new deals with Universal Music Group, Sony BMG, and CBS that will allow their video content to be shown on YouTube.
In its deal with UMG, YouTube has agreed to use new technology to prevent any unauthorized content from being posted on the video site.
The deal did not indicate whether or not UMG videos will be made available for purchase, and at what cost it would be offered.
YouTube’s deal with Sony BMG is based on streaming ad revenue, and also involves the use of technology that will enable the label to remove unauthorized content on the site.
The deal with CBS will allow people on the site to use content from its CBS brand television channels. CBS will be allowed to monitor the site and remove any content that is unauthorized, or keep the content posted and choose to run a streaming ad next to it.
Josh Bernoff, analyst at Forrester Research, said that though the new filtering technology helps YouTube’s long-term viability and allows it to avoid big lawsuits, it could make the site less engaging to its users.
Both Google and YouTube’s deals came after weekend rumors that the search giant was in talks with the video-sharing powerhouse about a possible acquisition. Later on Monday, it was confirmed that Google had indeed acquired YouTube for a reported $1.65 billion.
“We are natural partners to offer a compelling media entertainment service to users, content owners and advertisers,” said Google’s CEO, Eric Schmidt.
This deal should, among many other things, shield YouTube from copyright lawsuits, since it now has a deep-pocketed protector in Google.
Sources:
http://www.redherring.com/Article.aspx?a=19052&hed=
Google+Tunes+Music+Videos
http://news.com.com/YouTube+cuts+three+content+deals/
2100-1030_3-6123914.html?tag=nefd.top
http://www.pcworld.com/article/id,127434-c,
onlineentertainment/article.html
http://news.yahoo.com/s/ap/20061009/ap_on_bi_ge/
google_youtube;_ylt=Ao3GSmXRb3dqbhauJe9w_4EjtBAF;
_ylu=X3oDMTA2Z2szazkxBHNlYwN0bQ–
http://www.google.com/intl/en/press/pressrel/
google_youtube.html
