NBC & News Corp: response against YouTube?
The news popped up on Thursday, March 22. NBC and News Corp, the two industry giants in media and entertainment are joining forces to build a new network for showing their content on the Web. The announcement comes barely a week after Viacom filed a copyright-infringement lawsuit against YouTube. In the battle between new and old media, it's getting pretty busy. The online video market builds itself up. Alliances are made. The nine-year-old law meant to govern copyright in the digital age (the DMCA of 98) seems already outdated. But one thing is sure, a businness model is imposing itself on the Internet: free content financed by advertising.
The Web site is supposed to be launched in the US at the beginning of the summer 2007. It has not been named yet. NBC and News Corp's content will also be broadcasted on Web portals like AOL (Time Warner), MSN (Microsoft), MySpace (News Corp) and Yahoo. The two groups' TV shows, video clips and movies (Universal Picture and 20th Century Fox) will be available for free in streaming. The customers will be able to pay and download to own some movies, like on the Apple's iTunes Store. Furthermore, the users will have the possibility of uploading their own videos. NBC and News Corp will split advertising revenue and the host sites will get a cut from the advertising that is shown on their sites.
Is it really a response against YouTube? News Corp President Peter Chermin says it is not designed to be a YouTube-killer. In fact, he spoke with Google (YouTube parent company) chief executive Eric Schmidt about joining the venture. We don't know the negotiations' result yet. The objective seems to be a broadcasting over many sites. The image quality on the partners' sites could make the difference. However, even with lesser quality videos, can YouTube hegemony be offset? And is that really the point?