In Light of Viacom Inc.’s suit against Google for unauthorized use of its videos on YouTube. Fox parent News Corp. and Media Giant NBC Universal announced this thursday that they will be launching a free online video site this summer, featuring television shows and full-length movies.
Ever wonder what was YouTube’s secret to success? Studies have shown that people are choosing the internet as they’re source of entertainment over dvd’s or going to the cinema. That would explain Viacom’s suit against Google.
However YouTube’s success has left many media companies questioning their age old method and some companies are now realizing the need to change. Two such companies are NBC and Fox who are now aiming to capitalize on digital audio and video content just like YouTube and iTunes.
The only difference is that these companies actually own most of the video and audio content that consumers demand so replacing them to a digital form should be a piece of cake for them.
Interestingly enough NBC and Fox won’t be alone in their plan for a new website that would feature free TV shows and movies to be shown on major portals whilst being supported by ads. Yahoo, Microsoft and AOL will also be acting as distributors of the entertainment on their Web sites.
Newcorp CEO Peter Chernin had this to say:
“This is a game changer for Internet videoâ€
“We’ll have access to just about the entire U.S. Internet audience at launch. And for the first time, consumers will get what they want — professionally produced video delivered on the sites where they liveâ€
Is YouTube’s existence under threat?
With strict copywriting laws and these companies having access to legal distribution of video and audio content on the web it looks like YouTube’s only hope lies in its unique niche in user-generated content.
According to James McQuivey of Forrester Research:
“It’s not actually going to take away from YouTube because it’s as much about the social experience as the video. So YouTube is going to be fine,â€
Yes, YouTube may still have a fighting chance with its tools for users to share professionally produced and homemade material, but will that alone be enough to please consumers or will Google eventually decide to have YouTube join in with the hand(s) that feeds it…
Pali Capital’s Richard Greenfield had this to say on YouTube’s fate:
“It’s still not clear how user-generated content is going to fit in, and it’s still not clear that all of these companies won’t do a deal with Google over time,â€
Is this a plot by media companies to overthrow YouTube?
NBC and News Corp. claim they are also looking to find new partnerships which include Viacom and CBS Corp.
Viacom said it welcomed the new venture as a vehicle for spreading entertainment online while protecting copyright holders.
CBS said it would continue to discuss the possibility of working with the venture, among other initiatives.
A new YouTube in the Making…
Media company execs say this new YouTube will allow content to be posted on the site as well as allowing partners to feature videos on their individual Web sites.
There is also plans for a new Internet media player, which will be embedded on partner sites and carry branding of both. Plus the website will also allow users to edit — or “mashup†— some video, however it won’t have a component for uploading home-made videos.
My Take: I thought this piece of breaking news would be an interesting piece to share with readers in light of how Internet Marketers (including us) are now embracing YouTube as another way to improve site conversions
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