Google is encountering more than a few problems in trying to tie up content partnerships with big media firms for its YouTube online video service. Lately, big media, fed up with the proliferation of
copyright violation on YouTube, has been distancing itself from Google. On Monday, News Corp., Viacom, Sony Corp., NBC Universal, Time Warner Inc. and Walt Disney Co. made the serious allegation that
Google benefited from piracy by selling advertising and directing traffic to at least two Web sites suspected of offering access to illegal film downloads.
That's embarrassing,
especially when you consider the vehemence with which Google has tried to curry favor with these media firms. However, it seems Google has forgotten that Internet piracy is one of the main threats to
traditional media's vitality. The companies launched a case against the two unnamed Web sites they claim foster piracy; Google isn't a defendant, but it is mentioned as a facilitator. Google said it
would immediately cease doing business with the unnamed Web sites.
Meanwhile, the Web giant still has no broad licensing agreement with any of the broadcast TV or movie majors. Big
media is discussing the creation of a rival video service.
Read the whole story at The Wall Street Journal »