Feeds

Google swallows YouTube for $1.65bn

GooTube? YouGoog? Yougle?

Protecting users from Firesheep and other Sidejacking attacks with SSL

YouTube finally made its owners some cash today when search behemoth Google coughed up $1.65bn for the video clip mix-tape site.

The deal, trailed all weekend, came within hours of both firms striking deals with what they’d probably describe internally as old media companies.

As Google put it in when announcing the buy, “The acquisition combines one of the largest and fastest growing online video entertainment communities with Google's expertise in organizing information and creating new models for advertising on the Internet.”

YouTube will retain its “distinct brand identity” Google said, as well as its employees. Its backers will retain a shedload of Google shares, which no doubt will be converted into readies as soon as possible.

What does it mean for users? Apparently, “The combined companies will focus on providing a better, more comprehensive experience for users interested in uploading, watching and sharing videos, and will offer new opportunities for professional content owners to distribute their work to reach a vast new audience.”

We can only hope this means Google will provide a sensible way of searching and navigating clips, and will hold out the prospect of paying owners of copyrighted material that finds its way onto YouTube.

The deal came the same day that YouTube moved toward full legitimacy with a trio of deals with media giants. Presumably Google was waiting for the video clip site to head off any legal threats before signing on the dotted line.

Universal Music Group boss Doug Morriss had previously described YouTube as a "copyright infringer" which owed his firm tens of millions in royalties.

Now it seems he has acquiesced to the increasing distribution strength of YouTube, as have the big wigs over at Sony BMG.

The latter has properly gotten into bed with YouTube, with a carve-up of per-click advertising revenues on pages carrying its content. Universal has stopped shorter, inking a "strategic partnership" instead. YouTube will simply pay it for each music video or user-generated video that uses its music.

YouTube founder Chad Hurley said: "As a new distribution channel for media companies, YouTube is committed to balancing the needs of the fan community with those of copyright holders."

Warner Music embraced YouTube in September. Three of the big four record companies are now on board, with EMI the lone dissenter, though a deal is inevitable. Smaller record labels have been posting music videos to YouTube for months.

In the third of today's announcements, CBS becomes the first of the American networks to get smart to YouTube. NBC struck a more limited deal in June. CBS CEO Leslie Moonves said: "We're now able to offer select entertainment, news and sports programming to a new significant audience, get paid for it, and learn a few things along the way."

As well as providing content, CBS will act as policeman for user-uploaded video. It'll have sole discretion over whether video grabbed from its TV channels is allowed to stay on YouTube's servers. CBS will get a cut of advertising on pages it leaves online.

The firm will be the first to trial this new system, which YouTube hopes will placate twitchy copyright holders.

Funnily enough, Google struck similar deals with Warner and Sony today. Fancy that.®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.