Thursday, February 22, 2007

YouTube pays the price for violating Viacom's copyrights

OK, so the above title is kind of an editorial remark, loosely based on recent articles about how Viacom and YouTube were unable to reach a deal (a deal meaning Google would pay Viacom 100 mn or X amount for the rights to show their content). Whatever. Viacom asked YouTube on Feb 2nd to remove 100,000+ illegally uploaded videos. While YouTube apparently agreed to comply, it also left with parting words characteristic of its condescending parent, "It’s unfortunate that Viacom will no longer be able to benefit from YouTube’s passionate audience which has helped to promote many of Viacom’s shows..."

As a result, Viacom has just signed a deal with a YouTube rival upstart called Joost (founded by the Skype founders). Good, just what I like to see - Google losing out on a deal and not being able to strengthen its monopoly in everything it touches. Yeah, I'm a hater. But 700 mn a piece for YouTube's founders is just a bit overboard for a business model that I still don't see working. Good luck to Google bribing all the other media houses into hosting their content.

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