Risks involved in the YouTube buyout by Google
With all the media fanfare and speculation recently over the purchase of YouTube by Google, I wanted to share an excellent article I read about the ramifications of this buyout. The article is "The Battle Over YouTube", found on the October 9th issue of Newsweek.
The first major issue discussed is the well known controversy over YouTube’s airing of copyrighted material. For example, the music owned by the music company giant Warner, and the tentative profit sharing agreement that’s been reached between those two companies. But not all the music giants want to settle, like the biggest giant of all, Vivendi, which is threatening lawsuits. According to this article, since Google has bought out the company, and everyone knows that this company is rich (unlike the startup that was YouTube), they are now “a target for anyone who wants to sue."
The second major issue discussed, which is has not been widely publicized that I’m aware of, is the enormous operating expenses involved. The author quotes a source who estimates it to be “more than $2 million a month.”
Finally, the threat of startup competition is discussed. A popular YouTube video creator tells the author that he has “started experimenting elsewhere, advertising on his own Web site and trying out Revver.com”, even after being courted by YouTube.
I recommend reading this article because I think it provides more insight to the challenges ahead for this highly touted merger.
The first major issue discussed is the well known controversy over YouTube’s airing of copyrighted material. For example, the music owned by the music company giant Warner, and the tentative profit sharing agreement that’s been reached between those two companies. But not all the music giants want to settle, like the biggest giant of all, Vivendi, which is threatening lawsuits. According to this article, since Google has bought out the company, and everyone knows that this company is rich (unlike the startup that was YouTube), they are now “a target for anyone who wants to sue."
The second major issue discussed, which is has not been widely publicized that I’m aware of, is the enormous operating expenses involved. The author quotes a source who estimates it to be “more than $2 million a month.”
Finally, the threat of startup competition is discussed. A popular YouTube video creator tells the author that he has “started experimenting elsewhere, advertising on his own Web site and trying out Revver.com”, even after being courted by YouTube.
I recommend reading this article because I think it provides more insight to the challenges ahead for this highly touted merger.
posted by Heather at 9:01 AM
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