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News
YouTube Signs Deals with More Media Companies
Sunday, October 8th, 2006 at 3:00 PM - by Jeff Gamet
YouTube announced on Monday that it has signed content distribution deals with CBS, Sony BMG Music Entertainment, and Universal Music Group. YouTube, which is known for its community-based video content model, has been working to strike deals with media companies to bring additional content to its viewers.
CBS Corporation will add special short-form programming from CBS Television and Showtime. The shows will include news, sports, and other entertainment programming - like clips from Survivor, CSI, and The Late Show with Dave Letterman. YouTube and CBS will share the revenue generated from ad-based sponsorships.
The deal with Sony BMG brings video content from the Sony library to YouTube. Just like the CBS deal, the two companies will share advertising revenue.
Sony is also allowing YouTube users to post their own videos with Sony-licensed content. YouTube will use its new content identification architecture to help identify videos that contain copyright protected material. According to YouTube, "This architecture will provide Sony BMG the opportunity to authorize and monetize the use of their works within the user-generated content on the site."
Universal Music signed a deal similar to Sony's, allowing users to watch videos and add Universal-licensed content to their own videos. YouTube didn't state how licensing fees will be collected.
In September, YouTube struck a deal with Warner Music to show videos from several music artists. YouTube contends that its ad-based revenue system will generate enough money to satisfy its music partners.
Adding content to YouTube is just another venue that the music industry is exploring as it tries to increase its slipping profits. So far, Apple's iTunes Store has proven to be the most popular legit music and video download service. In comparison to other subscription-based services, the iTunes Store lets users purchase and download individual songs and videos.
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