Battle of the brands: Viacom and YouTube

For the second time in last four months, Viacom has demanded that YouTube, the video-sharing site, should remove all content from its networks, including MTV, Comedy Central, Nickelodeon, VH1, CMT, Spike TV and BET; an estimated 100,000 clips; after licensing talks between them broke down.

Viacom previously accused YouTube and Google of experiencing advertising revenue from the website and that Google compounded the issue recently by including video from YouTube in results from the Google Video search engine. Viacom said it insisted YouTube that clips from its programmes such as MTV, Comedy Central and Nickelodeon be “removed immediately” as “It has become clear that YouTube is unwilling to come to a fair market agreement that would make Viacom content available to YouTube users,” – Viacom said in a written statement. “Filtering tools promised repeatedly by YouTube and Google have not been put in place, and they continue to host and stream vast amounts of unauthorised video”, it added.

Viacom is an American media conglomerate with various worldwide interests in cable and satellite television networks including MTV Networks and BET, and movie production and distribution such as the Paramount Pictures movie studio and DreamWorks. The company is now taking a hard stance against the Internet’s most popular video service, which is renowned for its quirky, viewer-contributed video clips as much as for being a repository for unauthorized television shows.

“We take copyright issues very seriously,” YouTube; Google’s sister concern said in a statement. Google bought YouTube in November in a 1.65-billion-dollar stock deal. The company has historically removed clips at the request of copyright owners within hours. “It’s unfortunate that Viacom will no longer be able to benefit from YouTube’s passionate audience, which has helped to promote many of Viacom’s shows” it added. YouTube also said that it would comply with the request from Viacom and said it cooperates “with all copyright holders to identify and promptly remove infringing content as soon as we are officially notified. In November 2006, YouTube agreed to delete nearly 30,000 files after the Japan Society for Rights of Authors, Composers and Publishers complained of copyright infringement.

Video content on YouTube is provided by users and ranges from amateurish, homemade vignettes to clips from professional films, television programmes and music videos. YouTube has gone on record saying it follows US law by removing copyrighted works when the owners complain and is developing “fingerprinting” technology to better defend video ownership. Under federal copyright law, online services such as YouTube are generally immune from liability as long as it responds to takedown requests such as these, which YouTube often does. Less clear legally is what happens when another user posts the same video, something commonly done on the free video-sharing site.

Some media companies such as CBS Corp. and General Electric Co.’s NBC Universal have made deals to allow YouTube to use video clips from their programming, but others have yet to agree with the site over ways to get compensated for the use of their copyrighted material. Even as some media companies have decided to experiment with YouTube, other companies including News Corp., NBC and Viacom have held discussions to create its own online video business, sources have said. Viacom executives said the company wasn’t trying to block new forms of online distribution. It offers downloads through Apple Inc.’s iTunes store and partners with mobile phone carriers. Viacom, Newscorp’s Fox and General Electric’s NBC Universal have reportedly explored the idea of forming a YouTube competitor. At least three of the companies have also talked about filing a joint lawsuit against the video-sharing site

It’s a battle of the brands. Although Viacom is bickering with Google and YouTube, it hasn’t entirely cut business ties. MTV Networks has a revenue-sharing arrangement with Google Video to showcase clips from its channels. Viacom’s move also runs counter to the strategies employed by other media companies, such as the Warner Music Group, Vivendi-owned Universal Music Group, and General Electric controlled NBC Universal, which have all landed deals with YouTube to test the service. The move highlights the growing tension and interdependence between online video sites and traditional media companies. The latter dislike having their copyrighted material posted without permission, but they do like the extra promotion it brings.
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