Now, I don't know how the lawyers did the math - a billion dollars is a nice round sum. It works out to about $6,250 per video. Since the videos are likely segments of entire shows, I wonder how they worked out the aggregate numbers. They clearly see that YouTube has a powerful model: "building traffic and selling advertising off of unlicensed content," but don't want to be victimized.
NBC Universal, CBS Corp. and Universal Music Group already inked revenue-sharing deals with YouTube. Is Viacom's strategy a smart one? It may help this graph in the short-run, but it's tough to say beyond that.
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