Dutch Viacommer talks peace with YouTube

Sometimes people say really revealing things when they’re talking in a language that they figure nobody outside their own country understands. This is from leading Dutch paper NRC Handelsblad (clunky translation mine):

According to Dan Ligtvoet, head of MTV Networks Benelux, the lawsuit filed by “big boss” Viacom is mainly a means of forcing new negotiations with YouTube. “I think that MTV and YouTube will be dependent upon each other in the future. They have to work together. MTV would be able to provide YouTube and other online channels, like MySpace and Hyves, with clips and other content. Just like we now deliver to the Xbox, the PlayStation or your mobile telephone.”

I don’t think YouTube really needs MTV’s help to get music videos (it’s YouTube’s growing dominance in the music video space that the NRC article is mostly about), but I guess it would be interested in some of MTV’s original programming. In any case, it’s very interesting to hear someone inside the Viacom empire admit that the company “will be dependent upon” YouTube in the future.

Spain’s Prime Minister Warns Country Is in Danger of Being Shut Out of Markets

MADRID — Spain‘s prime minister warned Wednesday that the country faced the danger of being locked out of international markets as investors continued to fret about the future of the euro and Greece’s place in the 17-country eurozone.

“Right now there is a serious risk that (investors) will not lend us money or they will do so at an astronomical rate,” Mariano Rajoy told Spanish lawmakers.

Todd

On the surface this might just look like one super media outlet going after another for copyright infringement. And really, that’s the claim. Viacom claims that Google’s YouTube allowed copyrighted material (namely clips from Comedy Central programs “The Daily Show” and “The Colbert Report”) on their site and then refused to take them down. Google responded that as soon as the clips were identified by Viacom they were removed.
Seems fairly straight forward, right? Well, not exactly. If you look a little deeper, Viacom didn’t have a problem with the clips until it discovered that Google was generating advertising revenue through YouTube. Viacom decided that it wanted the advertising revenue instead (since apparently the paid advertisers and cable operating fees it already gets for the shows isn’t enough). Therefore, Viacom demanded the clips be removed from YouTube (which was done) and decided to through its considerable assets behind (future) YouTube competitor Joost. Joost is a new startup that also looks to offer video content online, but by taking a big stake in Joost, Viacom has ensured that it will get a piece of the advertising revenue stream that Joost will generate.

All right, again that might just seem like mere corporate greed, which it definitely is, but if that were all you probably wouldn’t bat an eye. I mean, billionaires filing frivolous lawsuits against each other doesn’t really effect the common man very much, does it? But wait, there’s more.

Joost, it turns out, is the brainchild of the creators of file swapping software Kazaa (I’d provide a link but it’s riddled with spyware). Kazaa, as you may recall, had the pants sued off it by the recording and motion picture studios, and had to pay damages to the tune of $100 million.

Perhaps now you’re beginning to see the true picture of what is going on here. Viacom, as it turns out, owns several movie studios (including Paramount and Dreamworks) and also MTV and its music subsidiaries. Now, Viacom is suing Google for $1 billion in a bid, not for increased revenue, but to get something for nothing. If it prevails against Google, it can both pay its legal costs and also reimburse itself the investment money it poured into Joost. Joost, as it tuns out, was created by the very same people that Viacom was involved in suing out of existence (not to mention it helped so 10 year-olds for millions for using the Kazaa software) for enabling users to give content away for free.

This is, truly, the pinnacle of hypocrisy, to the point where Viacom is violating its own Business Conduct Statement. I guess in the world of mega-business, you are only responsible for sticking to your own stated code of conduct if the Feds are looking at you. Otherwise, you can throw them out the window to make a few extra dollars, all at the expense of the consumer (and really, who cares about them anyway?).