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p2pnet news view | Advertising:- Apart from the fact they’re vehicles for advertisers thinly disguised as ’services,’ what else do Google’s GooTube and Fa$ebook have in common?

Surfers insist on using them for their own social sharing purposes, completely disregarding all attempts to turn them into Advertising Dollar Machines.

Gargle blew an eye-popping, mind-bending one hundred and sixty five billion ($1.65 billion) on YouTube but has yet to find a way of  making any decent money out of.

Those pesky entertainment cartels keep getting in the way with their copyright demands, and cynical efforts by the same companies to turn GooTube into an earner for themselves somehow never amount to a hill of beans.

As the Telegraph puts it >>>

With music videos being so popular, one of Google’s first moves following the purchase of YouTube was to shore up deals with all four major record labels, giving them a cut of revenue for streaming videos that included their music. There was no direct legal reason to do so, especially in the United States, where the “safe harbor” rules of the DMCA make it clear that any copyright liability would fall on those who uploaded the video, not the hosting firm. However, it avoided a potential lawsuit (since then, a similar lawsuit involving Universal Music and video hosting site Veoh has shown that the safe harbors do, in fact, protect the site).

However, the major record labels tend not to remain pleased for long, and if someone else is making any money at all, they tend to feel that they must be losing some. When it came time to renegotiate the deal, Warner Music tried to force Google to pay significantly more per stream. It’s still not entirely clear who initiated the next step, but the end result was that all Warner Music videos on YouTube disappeared. A few months later, in the UK, a similar dispute between Google and music collection society PRS resulted in Google blocking access to major label music videos there too. In both cases, the industry wanted to get paid a very high rate per stream, despite the fact that these videos where helping to drive a lot of attention for these artists, that could directly result in much greater revenue. Not only that, but they were providing a working platform for hosting and sharing videos – free.

But Gargle hasn’t given up and its latest effort appears to centre on subscriptions.

“YouTube is hoping to widen its catalogue from dogs on skateboards and Michael Jackson tributes by showing blockbuster movies and hit television programmes,” says the Independent. “The only problem is viewers may well have to pay to see them.”

“We’re making some interesting bets on long-form content,” Google’s David Eun told Reuters, saying, “content partners will be able to choose what works best for them.”

YouTube is “keen to bulk up its licensing of full-length programs alongside the popular short clips uploaded by users that currently dominate the site,” saysthe story, going on >>>

But Hollywood studios and TV companies are reluctant to cannibalize revenue streams, such as from cable TV and DVD sales, by offering premium programs for free viewing on the Web — even under an advertising revenue-share model.

Some of the options being considered by YouTube include variations of monthly subscription models such as those seen with cable TV providers.

Another option is a movie rental model similar to Apple Inc’s iTunes or Amazon.com. YouTube has held talks about rentals with Lions Gate Entertainment, Sony Pictures, and Warner Bros,

However, “many analysts see rival Hulu, which carries full length shows, as the future of the Web video business,” says the story.

The subscriptions move would bring YouTube “more directly into competition with catch up sites such as Hulu, the US-only site which shows full-length programmes and which is “rumoured to be coming to the UK,” says the Independent, also pointing out, “Many individual broadcasters also have their own online catch-up services, including BBC’s iPlayer and ITV Player.”

“It is understood not to have made a profit since being taken over but could be on course to break even next year,” saysthe story, adding:

“Yet it is understood that YouTube is not set to unveil a subscription model any time soon and, even if it does, it will probably first be rolled out in the US and restricted to that region.”

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Telegraph – How the record labels spurned the YouTube opportunity, December 17, 2009
Independent – YouTube may show films and TV programmes – but at a price, December 17, 2009
Reuters – YouTube looks at subscriptions, more ad dollars, December 15, 2009

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