Technology, Discovery & Innovation NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
This ad will display for the next 20 seconds. Click for more information, or
Home Computing Digital Life Discovery Space More Topics...
Eliminate costly downtime!
Find out how with Free White Paper
& enter to win a Samsung Galaxy Note
Digital Life
Average Rating:
Rate this article:  
YouTube Negotiating To Become a Digital MTV
YouTube Negotiating To Become a Digital MTV

By Jennifer LeClaire
March 5, 2009 12:50PM

Bookmark and Share
Google-owned YouTube is rumored to be negotiating a deal with Universal that could make YouTube the digital successor to MTV. An analyst said MTV has been abandoning its original mission of showing music videos. This time around the record labels want want to get paid for their content to appear on YouTube, with YouTube handling advertising.

Related Topics


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."

Tell Us What You Think


APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.

 Digital Life
1.   Android 'Fake ID' Puts Millions at Risk
2.   FTC Wants Fix for Mobile Cramming
3.   Facebook To Force Use of Messenger
4.   OkCupid Experiments with Daters
5.   BlackBerry Acquires Secusmart

Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Canadian Government Charges China With Cyberattack
The government of Canada is not happy with China. Canadian officials have accused "a highly sophisticated Chinese state-sponsored actor" of launching a cyberattack on its National Research Council.
Researchers Working To Fix Tor Security Exploit
Developers for the Tor privacy browser are scrambling to fix a bug revealed Monday that researchers say could allow hackers, or government surveillance agencies, to track users online.
Wall Street Journal Hacked Again
Hacked again. That’s the story at the Wall Street Journal this week as the newspaper reports that the computer systems housing some of its news graphics were breached. Customers not affected -- yet.

Enterprise Hardware Spotlight
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
Watson Gets His First Customer Service Gig
Since appearing on Jeopardy, IBM's Watson supercomputer has been making a living using his super-intelligent knowledge base for business verticals. Now, Watson's been hired for his first customer service job.
Tablet Giants Apple and Samsung Feel the Heat
When a company saturates its home market with a once-hot product, expect it to pump up efforts elsewhere. Apple, for its part, is now pushing iPads to big corporations and the enterprise market.

Mobile Technology Spotlight
Android 'Fake ID' Puts Millions of Users at Risk
Having this fake ID is nothing to brag about, even if you are a minor. The “Fake ID” Android flaw drops malware into smartphone apps. It can steal credit card data and even take over your device.
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
Facebook: You Will Use Messenger, and You Will Like It
Starting this week, Facebook users with Android and iOS phones will be forced to use the separate Messenger app to send Facebook messages. Pending messages will still be visible in the main app.

Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
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.