Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Computing Digital Life Discovery Space More Topics...
Build Apps 5x Faster
For Half the Cost Enterprise Cloud Computing
On Force.com
You are here: Home / Digital Life / YouTube Could Become Digital MTV
YouTube Negotiating To Become a Digital MTV
YouTube Negotiating To Become a Digital MTV
By Jennifer LeClaire / Sci-Tech Today Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
MARCH
05
2009



Could YouTube be the next MTV? If it inks a deal with Universal that's being widely rumored, it would be a strong first step. Negotiations are reportedly under way between the music giant and the video-sharing site to launch a premium online music destination.

It's not difficult to see why YouTube would make an attractive platform for Universal. According to comScore Video Metrix, U.S. Internet users viewed 14.8 billion online videos in January, a four percent increase over December. YouTube led the growth charge, accounting for 91 percent of the incremental gain. YouTube also surpassed 100 million viewers for the first time in January.

According to news reports, Universal approached the Google-owned site about the concept of an MTV-like digital forum late last year. The site would include videos from all the major music labels. YouTube would reportedly provide the infrastructure to sell advertising with the videos.

MTV's Digital Successor

According to Phil Leigh, a senior analyst at Inside Digital Media, the reports are credible. If Universal inks a deal with YouTube, it indicates that Google's popular video-sharing site is the likely digital-media successor to MTV, he said.

"MTV has been gradually moving away from simply showing music videos and showing more reality shows and other programming," Leigh said. "In doing so, MTV has sort of abandoned its original mission. That creates a vacuum, and YouTube can fill that vacuum. Of course, it all boils down to money."

From the perspective of the record labels, Leigh said, Universal, Warner Bros. and Sony, among others, feel they made a mistake with the MTV relationship by not demanding payment for broadcasting videos on the once-fledgling cable music station. The videos aired on MTV were instead a promotional tool to boost awareness of artists and albums.

"For decades, the MTV model worked well for the record labels, but it made MTV a huge success," Leigh said. "This time around, the record labels are insisting they get paid. This deal needs to be structured in such a way that both sides make money. That's why they are looking to set up a separate type of Web site within YouTube where these videos will be available. There will be more intensive advertising."

YouTube's Revenue Challenge

If the deal comes through, it might finally mark a way for Google to generate significant revenue from YouTube. YouTube has tried various approaches to advertising but hasn't found the sweet spot. Analysts said showing videos on demand from the major record labels could be the key. It could also address the concerns of the music copyright holders whose content has been displayed on YouTube without permission.

"It's all very logical. As is almost always the case in situations like this, the problem is money and dividing it up. YouTube is not going to permit themselves to lose money doing it. The labels are drawing a line in the sand and saying , 'We are not going to turn you into another MTV unless we get paid'," Leigh said. "I think both sides are trying to figure out a way for all parties to make money."

Read more on: Google, YouTube, MTV, Video
Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN DIGITAL LIFE
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Dairy Queen Latest Retailer To Report Hack
Known for its hot fries and soft-serve ice cream, Dairy Queen just made cyber history as the latest victim of a hack attack. The fast food chain said that customer data at some stores may be at risk.
 
Lessons from the JPMorgan Chase Cyberattack
JPMorgan Chase is investigating a likely cyberattack. The banking giant is cooperating with law enforcement, including the FBI, to understand what data hackers may have obtained.
 
Who Is the Hacker Group Lizard Squad?
Are they dangerous or just obnoxious? That’s what many are wondering about the hacker group Lizard Squad, which tweeted out a bomb threat that grounded a flight with a Sony exec aboard.
 

Enterprise Hardware Spotlight
Intel Intros Lightning-Fast PC Processors
Call it extreme. Intel just took the covers off its first-ever eight-core desktop processor, which is aimed at hardcore power users who expect more than the status quo from their computers.
 
HP Previews ProLiant Gen9 Data Center Servers
Because traditional data center and server architectures are “constraints” on businesses, HP is releasing new servers aimed at faster, simpler and more cost-effective delivery of computing services.
 
Apple Set To Release Largest iPad Ever
Tech giant Apple seems to have adopted the mantra “go big or go home.” The company is planning to introduce its largest iPad ever: a 12.9-inch behemoth that will dwarf its largest existing models.
 

Mobile Technology Spotlight
iWatch Watch: What Will Apple Ask Us To Wear?
There are still more questions than answers when it comes to details about the smart watch Apple seems poised to debut on Sept. 9. In fact, nobody seems completely sure that it will be a smart watch at all.
 
Samsung Maps Its Way with Nokia's 'Here' App for Galaxy Phones
Korean electronics giant Samsung has opted to license Here, Nokia’s mapping app -- formerly known as Nokia Maps -- for its Tizen-powered smart devices and Samsung Gear S wearable.
 
Google Successfully Tests Its Own Delivery Drone
While top technology companies are engaged in an "arms race" to develop drones that can quickly deliver goods to anyone anywhere, Google has revealed it successfully tested its own version.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.