Google, YouTube sign video content deals with media majors

By Steve Malone

Posted on 10 Oct 2006 at 10:35

In a flurry of announcements, Google and YouTube have signed a series of deals with many of the major music and television giants to broadcast their content for free through Google and YouTube video channels. This accompanies the announcement that Google is acquiring YouTube in a deal worth $1.65bn.

YouTube has signed agreements with Sony BMG, CBS Television and the world's biggest music publisher Universal Music Group whose CEO Doug Morris is reported to have recently told investors, 'We believe these new businesses are copyright infringers and owe us tens of millions of dollars. How we deal with these companies will be revealed shortly.'

YouTube has already signed a deal with Warner Music, which puts it well on track to make good its goal to host every music video ever made.

Google for its part has signed content deals with Sony and Warner Music to host their content through its Google Video site. With the media companies' consent, Google also expects to be able to offer the videos through its AdSense programme to existing and future partners.

Both Google and YouTube's deals cover not only any royalty payments due through copyright material appearing on the site, but any content that has been created by the audience using the content as source material.

The coincidence and similarity of the deals fuelled further speculation that the two online giants would soon agree a buyout of YouTube by Google. This has now happened. It will also calm fears that YouTube might fall foul of copyright infringement lawsuits brought by the major media companies.

In order to meet the concerns of copyright holders, YouTube has developed a series of products designed both to showcase and protect copyrighted material. Through its new dedicated Brand, the media companies and advertisers will be able to present their video content on YouTube in a format more consistent with their brands.

YouTube will not only provide a showcase for the material but will also provide a new content identification architecture for detecting and removing copyright material which is not authorised to appear on the site.

It is not only the music companies who are queuing up to sign with YouTube. CBS Television Network and subsidiaries Showtime Networks and CSTV Networks are to offer a range of video clips from its news, sports and entertainment divisions on a daily basis. YouTube and CBS will share revenue from advertising sponsorships of CBS Videos.