There’s many a slip twixt the cup and the lip. YouTube’s antipiracy software is not ready. As time passes the purchase of the video-sharting site begins to look more and more like Ebay purchase of Skype. They are expensive toys with lots of users and little revenue.
There has been concern for some time that content owners might go after Google’s large bank account because YouTube is used a platform for distribution of expensive content from studios and TV networks. The content companies do not get a dime.
With antipiracy software in place, Google had hoped to sign licensing deals that would bring it revenue for distribution which would be shared, in turn, with the content owners.
So far, no such luck. As the Financial Times writes: "Failure to build adequate systems to protect copyright owners could also add to the risk of legal action against the site."
If the priracy matter persists into the new year, Google will have to get itself a legion of attorney’s to go along with investor questions of why it paid $1.6 billion for YouTube.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
Top Gaining Stocks
Top Losing Stocks