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Prompt's TechBlog

Google and News Corp square up over web video

01 February 2007


There's been more jostling for position this week in the unpredictable world of online video. Google said it plans to pay users for original content uploaded to YouTube, in the same week as it got into a mighty battle with Fox over illegal uploads. Meanwhile, Fox's parent News Corp. quietly entered the online video fray itself, acquiring a stake in Australian video-streaming outfit Roo.

Google's plan to remunerate YouTube users emerged at the high-level talkfest that is the World Economic Forum. There are no details of payment schemes yet, but it suggests that Google may be concerned about users defecting to rivals like Revver, which pays its users a share of ad revenue. While Google has yet to crack the challenge of monetising user content on YouTube, its threefold revenue increase announced this week shows that it knows a thing or two about online advertising.

Meanwhile, there was a clash of old media and new media titans as Twentieth Century Fox subpoenaed Google into providing it with the name of a YouTube user who had uploaded new and unbroadcast episodes of The Simpsons and 24.

While Google mulls the threat of mega court action, it appears that this isn't the only step the Murdoch empire is taking to gain control of online video sharing. Twentieth Century Fox's parent, News Corporation, quietly bought a 5% stake this week in Australian online video firm Roo, which provides video streaming technology for News Corp websites like the UK's Times Online and Sun Online, as well as the website of Fox News. Could Murdoch be gearing up to take on YouTube on his own terms? Watch this space.


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