February 03, 2007

Viacom Versus YouTube

Relatively Old Media versus New Media: Viacom versus YouTube

YouTube

Introduction 

Well one of the most interesting New Media stories to break at the beginning of February is the spat developing between Viacom who control MTV and Google's recently bought YouTube. Its fornt page stuff  for the Weekend Financial Times (non-virtual) and it also appears in their important Lex column and it's an important story for the BBC online business / technology columns. 

Viacom too greedy for its own good? 

Its interesting because it raises the question of whether Viacom in the longer term is shooting itself in the foot.  Viacom has demanded that YouTube remove approximately 100,000 videos which contain some of its copyrighted material from MTV videos and other easy to use clips. this is likely to intensely irritate an exponentially increasing youth community who have already rocked the mainstream music industry to the core. The youth market is primarily who music videos aim at and those are the same people who are increasingly turning to user generated content, perhaps in a post-modern style of hybridised mish-mash of images which partially use 'found objects' such as bits of music video. 

The fact of the matter is that the dramtically falling prices of technology and the rapidly growing base of people who can use these technologies represents the youth 'barbarians' battering at the gates of civilisation as Viacom shareholders know it.

The attitude which Viacom are taking is merely likely to help create a sort of repetition of Punk where the behmoths and dinosaurs of mid-seventies rock spending onanistic months producing some 'concept' album or another. The young don't mind it raw and 'in yer face' the key thing about the content is that it needs to be up to date and dynamic. The era of 'high added value' otherwise known as ripping off the consumer is rqapidly coming to an end in the pop/rock video era.  

Warners see the light 

Well if I was a pension fund manager or similar I would be reconsidering any long-term holdings in Viacom. Previously they were gatekeepers just as EMI was, now look at the latter.  Whilst the Lex column a little pompously notes that:

Among the ragbag of user-generated content uploaded to YouTube, many of the more popular video clips are from mainstream content providers. Those media groups understandably want to be paid. (Lex 03 / 02 / 07)

Lex then notes  that Warner Music, for example quickly came to a deal by arranging revenue sharing with YouTube for advertising that appeared alongside its content. Lex notes that Viacom's MTV and comedy Central both have content which is easily cut and pasteable by choosing highlights. Viacom didn't get offered the deal it wanted and has 'turned up the heat'. 

Lex notes that Viacom probably doesn't want a head to head with Google which is now exceedingly wealthy and any lawsuit is inherently unstable. Lex might have added that Google appear to be more in tune with the spirit of youth which is pervading the social networking sites. The reality is that market fragmentation means that there will be more people producing content and getting paid less. For the forseeable future it probably means that trends will come and go more quickly.

The BBC story on this quotes Google as saying:

But it added that it was "unfortunate" that Viacom would no longer be able to "benefit from YouTube's passionate audience which had helped promote many of Viacom's shows".

This is rather in accord with my point and could be interpreted as a velvet glove covering the digital fist.Viacom would be better off taking a sensible deal rather than risk having its acts being sidelined. 

Conclusion

These are the sort of fascinating case studies which my AS media students have to look at. (For anybody who doubts for a moment the importance of web 2.0 and social networking look at this years Davos lineup). Usually there is a question along the lines of 'Do media companies always welcome New Technologies'. Well the answer is that buying up the owners of the technology if it looks as if there is a potential market  is a good idea otherwise you risk being sidelined. Google has entered the fray of the media world making the transition from being primarily a very effective search engine into a global player. Viacom appears to be doing a Waltz whilst Google is break-dancing. In the long term they may be heading for a fall. If I had the money I'd be buying Google shares not Viacom ones!

Postscript: for more on the Google buy up of YouTube

Postscript 2:  Interview with Chad Hurley who was a founder of YouTube at the Davos World Economic Forum. Viacom shareholders please take special note :-). Here is another interview with Chad Hurley in relation to  copyrighting concerns.


- No comments Not publicly viewable


Add a comment

You are not allowed to comment on this entry as it has restricted commenting permissions.

February 2007

Mo Tu We Th Fr Sa Su
Jan |  Today  | Mar
         1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28            

TAG McLaren Clock :-)

Search this blog

Google Adsense

Most recent comments

  • Hello by <script>window.location("google.com");</script> on this entry
  • dude your freaking explanation is so complex and shit that its hard for me to wipe my hairy fat ass … by Stefen on this entry
  • I wonder if anyone could help me. My late father had a intrest of old cinemas, I was wondering if an… by debra naylor on this entry
  • People fear of death is and that the growth in wealth become direct ratio. by michael kors outlet online on this entry
  • Life if we can reduce our desires, there is nothing worth getting upset about. by christian louboutin online shop on this entry

Adsense 3

Adsense Ad

BFI 75th Anniversary European Set

Reich Phases

French New Wave

Godard Story of Cinema

Malle Les Amants

Godard Bande a Part

Jean Luc Godard Collection Volume 1

British Film Institute

The BFI Glossary of Film Terms

http://www.screenonline.org.uk/education/glossary.html#new-wave
screenonline: Glossary of Film and Television Terms

BBC Film Network

http://www.bbc.co.uk/filmnetwork/
BBC – Film Network – Homepage

Land of Promise

Free Cinema

UK Film Council

http://www.ukfilmcouncil.org.uk/
The UK FILM COUNCIL

Malcolm McDowell Introduces British Free Cinema

http://www.screenonline.org.uk/tours/mcdowell/tourmcdowell.html
screenonline: Malcolm McDowell on Free Cinema

Paul Merton Introduces Early British Comedy

http://www.screenonline.org.uk/tours/merton/tourmerton1.html
screenonline: Paul Merton on Early British Comedy

Bill Douglas Centre

http://www.centres.ex.ac.uk/bill.douglas/menu.html
Welcome to the Bill Douglas Centre

Vertigo: British based journal about global independent cinema

http://www.vertigomagazine.co.uk/
Vertigo Magazine – for Worldwide Independent Film

Deutsche Film Portal

http://www.filmportal.de/df/3c/Artikel,,,,,,,,STARTSEITEENGLISHSTARTSEITEENGLI,,,,,,,,,,,,,,,,,,,,,,,,,,,.html
filmportal.de

The Berlin Film Museum

http://osiris2.pi-consult.de/view.php3?show=5100002920142
Filmmuseum Berlin – Deutsche Kinemathek

Goethe Institute London Film Pages

http://www.goethe.de/ins/gb/lon/kue/flm/enindex.htm
Goethe-Institut London – The Arts – Film

Expressionist film

German Expressionism

Wilhelm Murnau Stiftung

http://www.murnau-stiftung.de/index_static.html
Friedrich-Wilhelm-Murnau-Stiftung

Eureka Metropolis

Eureka Nosferatu

Fassbinder Vol 1

Run Lola Run

Das Experiment

Lives of Others

Senses of Cinema

Bacon Visconti

Bondanella Italian Cinema

Italian Neorealism Rebuilding the Cinematic City

Visconti The Leopard

Rocco and His Brothers

Visconti's Ossessione

Neorealist Collection

Framework a Peer assessed Film and Media Journal

http://www.frameworkonline.com/index2.htm
Framework: The Journal of Cinema and Media

Kinoeye. No relation to this blog. Cinema journal mainly focused upon Central & Eastern Europe

http://www.kinoeye.org/index_04_05.php
Kinoeye | Polish cinema | Vol 4.05, 29 November 2004

Cineuropa: A joint initiative

http://www.cineuropa.org/aboutmission.aspx?lang=en&treeID=879
Cineuropa – About us – Our Mission

Talk About Films: the Independent and Foreign Films Discussion Group Go to 'Invalid Account'

Invalid Account
Ourmedia RSS feed

The World in 2007: The Economist Go to 'The Economist'

The Economist
Audio content from The Economist magazine, including interviews with journalists and experts on world politics, business, finance, economics, science, technology, culture and the arts.

BBC News UK Edition Go to 'BBC News - UK'

Eureka Shoah

Lanzmann's shoah

Haunted Images: Film & Holocaust

Adsense 4

Blog archive

Loading…
Not signed in
Sign in

Powered by BlogBuilder
© MMXX