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Tuesday, October 31, 2006

The Post on YouTube

While I give the Washington Post props for their fabulous three page comics spread and pretty extensive international coverage, I've learned over the years not to expect much from their business section. Still, that didn't prevent an article this morning from adding to my usual morning grumpiness.

The article, obviously prompted by recent demands from media companies to remove their copyright protected works, starts off with the following:

"Media companies are of two minds about Internet video-sharing site YouTube, which rocketed to fame by letting users share homemade videos along with copyrighted clips from movies, TV shows and music videos."

Okay, yes. Some companies have decide that using YouTube as free advertising vehicle is in their best interest and others have no interest in having their material up on the site. Fair statement - On to the next paragraph:

"They are unsure of whether YouTube is a friend or a foe -- a threat that could siphon off their TV audiences and ad dollars or a powerful promotion machine that could generate buzz for the shows. While users have had virtually unfettered freedom to post and watch whatever clips they want, big media companies are starting to reassert control by seeking removal of some shows."

Hmm... I think that's a pretty big assumption that media companies are floundering around, not sure of how to deal with that new-fangled YouTube thingy. In the case of Comedy Central, I think the company knew exactly what they were doing. You see, the Comedy Central website has free, full length versions of certain shows available for viewing. Now, what do you think the difference is between these versions and the ones on YouTube? That's right- ADVERTISING. The version on the Comedy Central website makes you watch a short commercial before viewing the chosen episode. (There could be more advertisements throughout but, I didn't really feel right about sitting around at work watching the Daily Show). Who are the recipients of the ad revenue? The folks at Comedy Central. Now under the YouTube model, as explained so eloquently by entertainment lawyer Chris Castle, here (see step 19), ad revenue is distributed by Google as it sees fit. Hmmm, Comedy Central seems to have been making a pretty sound business decision to me.

Now, the other media company mentioned in the article who has embraced YouTube is NBC Universal. NBC also offers a few full length shows on their website but only two minute summaries are offered of the more popular shows (no commercials either). The full length offerings seem to be the new shows that probably could use a bit more promotional help, so, hence, I'm assuming, they are willing to have some tidbits circulated on YouTube. Not a lot of advertising revenue lost, free promotion, seems like a win-win situation.

Now, the big theme tying these decisions together is that each individual company made what it viewed as the most beneficial choice for their respective business. In my view, one is not embracing technology while the other company is reasserting control." They both made decisions based on what would be best for profits and the company.

Okay, now I just have to point out one of the "sources" quoted in Washington Post story:

[Name of bonehead has been removed so not to embarrass his family], a 22-year-old who lives in Arlington, has posted "Daily Show" clips to YouTube and doesn't worry too much about copyright infringement. "There's been such a separation from my generation in that area. Not many people are as concerned about the copyright issue," [he] said. "People want to have entertainment. People want to share their experience with their friends. This is not really going to change all that much until [TV] networks get behind using this new technology to push their media out."

Oh my goodness. I won't touch the fact his "generation" just isn't that concerned about respecting copyright but, he sort of made a point. Media companies do have to continue to embrace new distribution models and technologies but, shouldn't they have some control over how their content is handled and who profits from it?

posted by Amy Smorodin @ 3:10 PM | Art , Markets: Business, Investment & Innovation

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