Youtube, the Internet and the Future of Movies

2280 Words Nov 2nd, 2011 10 Pages
YouTube, The Internet and the future of movies

The Internet has transformed the music industry. Sales of CDs in retail music stores have been declining while sales of songs downloaded through the Internet to iPods and other portable music players are skyrocketing.

And the music industry is still contending with millions of people illegally downloading songs for free.

Will the motion picture industry have a similar fate?

Increased levels of high-speed Internet access, powerful PCs with DVD readers and writers, portable video devices, and leading-edge file sharing services have made downloading of video content faster and easier than ever. Free and often illegal video downloads are currently outpacing paid video downloads by four to one.
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Viacom claimed in a 2008 lawsuit that over 150,000 unauthorized clips of its copyrighted television programs had appeared on YouTube. The media conglomerate is seeking $1 billion in damages from YouTube.

When Google purchased YouTube in 2006 for $1.65 billion, the site gained considerable clout in the media world. With YouTube reporting 100 million video views per day and becoming one of the most visited sites on the entire Web, the major production studios were not going to stand idly by while some-one else profited off of movies that cost them an average of over $106 million to make. NBC Universal, for example, assigned three employees to search YouTube every day for property that had been posted without permission.

Of course, in the end, the chase probably is not worthwhile. Rather than pursue an unachievable goal, some of the major studios, including NBC Universal, Time Warners Warner Brothers Entertainment, and News Corporations Twentieth Century Fox, sought more constructive solutions.

They entered into negotiations with YouTube to establish licensing agreements that would make copyrighted content available legally. The licensing model was already in place between YouTube and several major music companies. Furthermore, YouTube had already engineered successful arrangements with major studios to market movies on the site.

The studios clearly recognize the value of getting exposure for their movies on such a heavily
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