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YouTube can't blame Viacom for ad woes

News Type: Opinion — Seeded on Wed Jul 9, 2008 8:18 AM EDT
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A big audience doesn't automatically mean big profits.

That's the lesson YouTube and Google are learning the hard way, according to a story published Tuesday evening by The Wall Street Journal. The newspaper's Web site reported that YouTube is generating $200 million in ad sales and is stilling failing to meet its revenue expectations.

Other startling revelations in the piece include a plan by Google to allow preroll and postroll advertisements to appear on YouTube, and that it has identified 105 problems with YouTube's ad sales. Another surprise came when it was suggested that the $1 billion copyright lawsuit Viacom filed against Google last year, has forced YouTube to water down its ad strategy.

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Marilyn L

Good clear analysis of the YouTube situation:

Scores of YouTube users post unauthorized clips on YouTube every day but YouTube has always claimed to be an Internet Service Provider, just like Craigslist or eBay, and is protected from liability under copyright law, or more specifically, the DMCA's Safe Harbor provision.

But the Safe Harbor requires that for an ISP to be protected, it must not directly profit from copyright infringing material. That means if YouTube posts ads alongside pirated videos, it risks losing the protection.

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  • 1 vote
Reply#1 - Wed Jul 9, 2008 8:19 AM EDT
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