Universal Thinker

The battle rages on between Viacom and Youtube.

Google’s lawyers say that Viacom’s lawsuit, “threatens the way hundreds of millions of people legitimately exchange information, news, entertainment and political and artistic expression.”

Google contends that Youtube has followed the notice-and-takedown procedure of the DMCA.

In response, Viacom has cited over 150,000 examples of infringing content on Youtube, and is suing for $1 billion dollars. According to Techdirt, Viacom had $11.5 billion in revenues for 2006, so this suit is for nearly 10% of everything that they sold in 2006. Excessive?

Viacom has planned to create its own site for sharing content in much the same way Youtube operates - essentially copying the business model of Youtube.

What Viacom may be overlooking is the fact that the viewership of their content is far in excess of what it would have been if it had only been distributed via traditional channels. Viacom says that their content has been viewed over 1.5 billion times on Youtube.

Essentially what this all points to is the fact that the traditional business model of broadcast media is nearing the end, and a new business model will be necessary to take its place. When an industry has to resort to lobbying for changes to law that protect their outdated business model (DMCA) and create an un-level playing field counter to the free-market and competition, that indicates that in the current market climate, the business model needs to be adapted. This is the reality that all old media companies will have to come to terms with. You cannot stop change, nor time with an army of lawyers, as change is inevitable. Might as well adapt rather than stagnate.