More Bad News For YouTubeDec 22nd, 2008 | By James Lewin | Category: Featured Story, Internet TV, Streaming Video, Video
Google got some more bad news today about YouTube.Â
Not only is Warner Music Group pulling all its videos off YouTube – it’s in talks to create an alternate to YouTube for music videos.Â
According to a report at Silicon Alley Insider:
A source familiar with the negotiations tells us that Warner and the three other majorsÂ — Sony BMG, EMI, and Universal Music Group — all think they could do better creating their own music video Web destinations and are in early talks about forming a joint venture similar in concept to Hulu, the increasingly popular TV-on-the-Web joint venture from News Corp and NBC Unviersal.
A joint venture is just one possiblity each label is considering. Our source said there have been many brain-storming sessions. If we were to contribute to those, we’d say that if the labels do create a joint venture, we think it’ll probably be popular like Hulu, but frought with similar problems. Namely, it’ll be stuck with hosting bills and not allowed to keep most its ad revenue, which we’re not sure there will be that much of, if YouTube’s $25,000 checks are any indication.
This is bad news for YouTube, because it’s likely to have another competitor, like Hulu, offering professionally produced content that’s advertiser friendly.Â
It’s also bad news for YouTube users, because it increases the likelihood that videos will get yanked from the site because of the music they contain.Â
If this trend continues, the pressure will only increase for Google to find a way to either move towards mainstream content or find a way to make money on user-generated videos.