Google’s (GOOG) YouTube has come up with a new content filter called "fingerprinting". It uses software to find content with data supplied from major media companies. The video-sharing site will test the product with Time Warner (TWX) and Disney (DIS).
The market’s knee-jerk reaction to this is that it will allow YouTube a way around the complaint that it does not police the video intellectual property of large media companies. It may help the site in its lawsuit with Viacom (VIA) which is claiming $1 billion in damages for its content which the company says was pirated and placed on the site.
But, that view misses the point. Finger printing of video will show how powerful YouTube is by demonstrating just how much big media content is put on its site. Once located, the networks and studios can elect to take the content down, and lose substantial promotion exposure. Or, they can cut an economic deal with YouTube to keep the content up and benefit themselves.
YouTube’s new tech is, very simply, a way to show big media what they do not have. YouTube is a video outlet with a huge audience that they can never recreate. By identifying content, the video-sharing site can say "we have something here that you need", but, if you would like we can take it down. Or, you can cut a deal with us.
Backdoor marketing at its best.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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