Monday, April 03, 2006
YouTube: Way Beyond Home Videos:
"...The trouble is, the freewheeling approach that has made YouTube a hit could be its downfall. Users have been posting videos that are still under copyright, without any of the required legal approvals. These include clips from the Olympics, prime-time news shows, episodes of The Office, and music videos. Needless to say, this doesn't sit well with the major media companies. NBC, CBS, and others have requested that YouTube remove clips taken from them. Hurley and Chen typically don't screen out copyrighted works before they're posted, but they do comply with all such requests.
That raises the question: What does YouTube want to be when it grows up? Is it the next NBC or the next Napster (NAPS )? Hurley and Chen think they're working toward the future of TV. Venture stalwart Sequoia Capital is betting on the prospect, having invested $3.5 million. But skeptics wonder if the startup can balance its surging popularity with the looming legal risks. "I think YouTube is fantastic," says Joanne Bradford, head of sales at MSN and other Microsoft properties. "But five years from now I don't know how they make their money. Their problem is all the pirated content."
The next few months will be critical. Hurley and Chen are investigating whether they can generate revenues by adding advertising. They're also working to convince media companies that YouTube can be a good partner, capable of delivering an audience of millions. The San Mateo (Calif.) company is rolling out tools aimed at protecting copyrighted works, including technology that prevents clips from being uploaded again once they've been removed. They're also limiting videos to 10 minutes to cut out entire TV episodes and movies. "We want to be a destination that promotes the entertainment offered by these guys," says Hurley, YouTube's chief executive...."
"...The trouble is, the freewheeling approach that has made YouTube a hit could be its downfall. Users have been posting videos that are still under copyright, without any of the required legal approvals. These include clips from the Olympics, prime-time news shows, episodes of The Office, and music videos. Needless to say, this doesn't sit well with the major media companies. NBC, CBS, and others have requested that YouTube remove clips taken from them. Hurley and Chen typically don't screen out copyrighted works before they're posted, but they do comply with all such requests.
That raises the question: What does YouTube want to be when it grows up? Is it the next NBC or the next Napster (NAPS )? Hurley and Chen think they're working toward the future of TV. Venture stalwart Sequoia Capital is betting on the prospect, having invested $3.5 million. But skeptics wonder if the startup can balance its surging popularity with the looming legal risks. "I think YouTube is fantastic," says Joanne Bradford, head of sales at MSN and other Microsoft properties. "But five years from now I don't know how they make their money. Their problem is all the pirated content."
The next few months will be critical. Hurley and Chen are investigating whether they can generate revenues by adding advertising. They're also working to convince media companies that YouTube can be a good partner, capable of delivering an audience of millions. The San Mateo (Calif.) company is rolling out tools aimed at protecting copyrighted works, including technology that prevents clips from being uploaded again once they've been removed. They're also limiting videos to 10 minutes to cut out entire TV episodes and movies. "We want to be a destination that promotes the entertainment offered by these guys," says Hurley, YouTube's chief executive...."
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