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	<title>MediaMemo &#187; Disney</title>
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		<title>Hulu is Still Free, and Bigger than Ever. Next Year, Though&#8230;</title>
		<link>http://mediamemo.allthingsd.com/20091125/hulu-is-still-free-and-bigger-than-ever-next-year-though/</link>
		<comments>http://mediamemo.allthingsd.com/20091125/hulu-is-still-free-and-bigger-than-ever-next-year-though/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 21:16:10 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Peter Kafka]]></category>
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		<category><![CDATA[television]]></category>
		<category><![CDATA[video]]></category>
		<category><![CDATA[ABC]]></category>
		<category><![CDATA[comScore]]></category>
		<category><![CDATA[Disney]]></category>
		<category><![CDATA[Fox]]></category>
		<category><![CDATA[GE]]></category>
		<category><![CDATA[Hulu]]></category>
		<category><![CDATA[NBC Universal]]></category>
		<category><![CDATA[News Corp.]]></category>
		<category><![CDATA[YouTube]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=13307</guid>
		<description><![CDATA[Given that Hulu is about to start tinkering with paywalls and subscriptions, its viewership numbers matter a bit less than they used to. But for the record, the video had a record October. It will be very interesting to see what happens to these numbers next year, if Hulu does move ahead with some sort of pay service.]]></description>
			<content:encoded><![CDATA[<p>Given that <a href="http://mediamemo.allthingsd.com/20091023/how-much-will-you-have-to-pay-for-hulu-nothing-how-much-will-you-pay-for-hulu-plus-good-question/">Hulu is about to start tinkering with paywalls and subscriptions</a>, its viewership numbers matter a bit less than they used to. But for the record, the site &#8212; co-owned by News Corp.&#8217;s Fox (NWS), GE&#8217;s NBC Universal (GE) and Disney&#8217;s ABC (DIS) &#8212; had a record October.</p>
<p>Comscore (SCOR) says the site generated 856 million video views during the month, second only to Google&#8217;s YouTube (GOOG) in the U.S. That makes sense, given that Hulu is driven in large part by broadcast TV, which starts running new shows in the fall.</p>
<p>And if Hulu <em>didn&#8217;t</em> post record numbers <a href="http://mediamemo.allthingsd.com/20090402/hulu-makes-room-for-a-third-disney-deal-coming-soon/">after adding ABC&#8217;s shows to the mix</a>, there would be some real head-scratching. But it will be very interesting to see what happens to these numbers next year, if Hulu does move ahead with some sort of pay service.</p>
<p><a href="http://mediamemo.allthingsd.com/files/2009/11/comscore-views.png"><img class="alignnone size-full wp-image-13308" title="comscore views" src="http://mediamemo.allthingsd.com/files/2009/11/comscore-views.png" alt="comscore views" width="316" height="404" /></a></p>
<p>As always, note the huge disparity between YouTube and everyone else. And it&#8217;s also worth noting that while Hulu generates more views than any of its non-YouTube competitors, its reach isn&#8217;t quite as deep:</p>
<p><a href="http://mediamemo.allthingsd.com/files/2009/11/comscore-audience.png"><img class="alignnone size-full wp-image-13309" title="comscore audience" src="http://mediamemo.allthingsd.com/files/2009/11/comscore-audience.png" alt="comscore audience" width="312" height="422" /></a></p>
<p>All of which is less relevant than the JV&#8217;s performance, which is still the subject of much debate. People familiar with Hulu tell me it is &#8220;close to break-even&#8221;, but I worry about putting much stock in words like &#8220;close&#8221; (or &#8220;break-even&#8221;, for that matter) without seeing numbers.</p>
<p>And in any case, that&#8217;s only half the issue for its owners these days &#8212; just as important is the performance of its parent companies, and whether all the free stuff on Hulu is helping or hindering their networks and studios.</p>
<p>But more on that after the holiday. For now, here&#8217;s wishing you and yours a happy and healthy Thanksgiving.</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/AnohHTLMs3Q&amp;hl=en_US&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/AnohHTLMs3Q&amp;hl=en_US&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<title>Why Broadcast TV Won't Miss Oprah</title>
		<link>http://mediamemo.allthingsd.com/20091120/why-broadcast-tv-wont-miss-oprah/</link>
		<comments>http://mediamemo.allthingsd.com/20091120/why-broadcast-tv-wont-miss-oprah/#comments</comments>
		<pubDate>Fri, 20 Nov 2009 17:38:14 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[advertising]]></category>
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		<category><![CDATA[local TV stations]]></category>
		<category><![CDATA[market]]></category>
		<category><![CDATA[Michael Meltz]]></category>
		<category><![CDATA[news broadcast]]></category>
		<category><![CDATA[Oprah Winfrey]]></category>
		<category><![CDATA[optics]]></category>
		<category><![CDATA[OWN]]></category>
		<category><![CDATA[ratings]]></category>
		<category><![CDATA[TV]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=13111</guid>
		<description><![CDATA[You can debate whether Oprah Winfrey's plans to shut down her broadcast show--in 2011--and move to cable constitutes "news." Ditto for what it means for the culture.

But what do Oprah's plans mean for the TV business? Not that much, argues JP Morgan analyst Michael Meltz.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/11/oprah.jpg"><img class="alignright size-medium wp-image-13118" title="oprah" src="http://mediamemo.allthingsd.com/files/2009/11/oprah-249x187.jpg" alt="oprah" width="249" height="187" /></a>You can debate whether Oprah Winfrey&#8217;s plans to shut down her broadcast show&#8211;in 2011&#8211;and move to cable <a href="http://twitter.com/MattGarrahan/status/5875423717">constitutes</a> <a href="http://twitter.com/benfritz/statuses/5876068317">&#8220;news.&#8221;</a> Ditto for what it means for the culture.</p>
<p>But what do Oprah&#8217;s plans mean for the TV business? Not that much, argues JP Morgan (JPM) analyst Michael Meltz. Short version of his note published this morning: It&#8217;s not bad for OWN, the cable network Oprah co-owns with Discovery (DISCA). But it&#8217;s also not terrible for CBS (CBS) and Disney&#8217;s (DIS) ABC, the two broadcasters currently in the &#8220;Oprah&#8221; business.</p>
<p>That&#8217;s because while the move makes for unpleasant &#8220;optics&#8221;&#8211;bizspeak for &#8220;looks bad&#8221;&#8211;for broadcast, it turns out that Oprah didn&#8217;t make that much money for the business. (But <a href="http://www.forbes.com/lists/2009/54/rich-list-09_Oprah-Winfrey_O0ZT.html">plenty for herself</a>, obviously.)</p>
<p>Medium-sized version of Meltz&#8217;s argument:</p>
<ul>
<li>The show made $50 million a year for CBS, which syndicated the program. CBS would rather have that money than not, but losing it will amount to a &#8220;rounding error&#8221; in 2012.</li>
<li>The show was a big ratings hit for local TV stations, but they paid a lot for it&#8211;upward of $200,000 a week in big markets. That made it a loss-leader for most broadcasters, Meltz says.</li>
<li>And yes, the show provided a big lead-in audience to local TV news broadcasts, particularly in top ABC markets. But given that it&#8217;s not going to end up on a rival broadcast channel, &#8220;it is conceivable that station audience/ad share won&#8217;t change much for the day-part.&#8221;</li>
</ul>
<p>Okay. Back to the crying and teeth-gnashing.</p>
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		<title>A Few Tunes for Hulu: Here's Norah Jones</title>
		<link>http://mediamemo.allthingsd.com/20091118/a-few-tunes-for-hulu-remember-norah-jones/</link>
		<comments>http://mediamemo.allthingsd.com/20091118/a-few-tunes-for-hulu-remember-norah-jones/#comments</comments>
		<pubDate>Wed, 18 Nov 2009 12:04:18 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[digital]]></category>
		<category><![CDATA[entertainment]]></category>
		<category><![CDATA[media]]></category>
		<category><![CDATA[music]]></category>
		<category><![CDATA[television]]></category>
		<category><![CDATA[video]]></category>
		<category><![CDATA[ABC]]></category>
		<category><![CDATA[Disney]]></category>
		<category><![CDATA[EMI Music Group]]></category>
		<category><![CDATA[Fox]]></category>
		<category><![CDATA[GE]]></category>
		<category><![CDATA[Hulu]]></category>
		<category><![CDATA[NBC Universal]]></category>
		<category><![CDATA[News Corp.]]></category>
		<category><![CDATA[Norah Jones]]></category>
		<category><![CDATA[Sony]]></category>
		<category><![CDATA[Universal Music Group]]></category>
		<category><![CDATA[VEVO]]></category>
		<category><![CDATA[Warner Music Group]]></category>

		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=13017</guid>
		<description><![CDATA[Here's a match up that makes plenty of sense: EMI Music Group, which has a new Norah Jones album to promote, is showing her videos on Hulu, the video joint venture that specializes in "premium" content. But the deal is the only one of its kind. While the big music labels have played footsie with Hulu in the past, they have yet to actually move any of their clips there. Instead, they're concentrating on YouTube, which makes plenty of sense.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/11/norah-jones.png"><img class="alignright size-medium wp-image-13019" title="norah jones" src="http://mediamemo.allthingsd.com/files/2009/11/norah-jones-250x218.png" alt="norah jones" width="250" height="218" /></a>Here&#8217;s a match up that makes plenty of sense: EMI Music Group, which has a new Norah Jones album to promote, is <a href="http://www.hulu.com/norah-jones">showing her videos on Hulu</a>, the video joint venture that specializes in &#8220;premium&#8221; content.</p>
<p>But oddly, the deal is the only one of its kind. While the big music labels have played footsie with Hulu in the past, they have yet to actually move any of their clips there.</p>
<p>That could still happen one day, and the site <a href="http://bits.blogs.nytimes.com/2009/11/18/hulu-takes-first-step-into-music/">hints</a> that you may see more clips coming down the road. But Hulu is less valuable for the labels than it could have been a year ago: Since then, three of the big four have struck deals that give them much more incentive to show their stuff on Google&#8217;s (GOOG) YouTube, the world&#8217;s biggest video site.</p>
<p>Vivendi&#8217;s Universal Music and Sony (SNE) have a deal that locks up their stuff exclusively on Vevo, a sort of <a href="http://mediamemo.allthingsd.com/20090604/sony-joins-vevo-universals-hulu-for-music-videos/">&#8220;Hulu for music videos&#8221;</a> that will be powered by YouTube. And <a href="http://mediamemo.allthingsd.com/20090928/how-the-youtube-warner-music-deal-got-done-meet-vevo-jr/">Warner Music Group (WMG) has convinced YouTube</a> to give the label its own branded channel for its clips.</p>
<p>No word on financials for the Hulu deal, but I&#8217;d surprised if this generates much cash for EMI. Hulu&#8217;s core partners&#8211;News Corp.&#8217;s (NWS) Fox, GE&#8217;s (GE) NBC Universal and Disney&#8217;s (DIS) ABC&#8211;have deals that let them keep 70 percent of any ad revenue their stuff generates on the site. But other partners get closer to 50 percent.</p>
<p>In other Norah news, my soon-to-be sort-of neighbor is having <a href="http://www.nypost.com/p/news/local/brooklyn/neighbors_bash_norah_window_in_brick_jYuf3MMZy0GNU0pAD9fiEI">construction problems</a>. Here she is taking on one of the great Wilco songs:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="202" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="src" value="http://www.hulu.com/embed/nDj9hT2oZvtXlCq3HbJjIg" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="202" src="http://www.hulu.com/embed/nDj9hT2oZvtXlCq3HbJjIg" allowfullscreen="true"></embed></object></p>
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		<title>YouTube's Newest Partner: Will Ferrell</title>
		<link>http://mediamemo.allthingsd.com/20091105/youtubes-newest-partner-will-ferrell/</link>
		<comments>http://mediamemo.allthingsd.com/20091105/youtubes-newest-partner-will-ferrell/#comments</comments>
		<pubDate>Thu, 05 Nov 2009 13:19:39 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<category><![CDATA[Funny Or Die]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12825</guid>
		<description><![CDATA[Slowly but surely, YouTube has been able to bump up the number of "premium" content creators willing to hand over some of their stuff to the world's biggest video site. Here's yet another one: Funny or Die, the comedy site backed by Will Ferrell, Sequoia and HBO, among others.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/11/will-ferrell.png"><img class="alignright size-medium wp-image-12826" title="will ferrell" src="http://mediamemo.allthingsd.com/files/2009/11/will-ferrell-250x149.png" alt="will ferrell" width="250" height="149" /></a>Slowly but surely, YouTube has been able to <a href="http://mediamemo.allthingsd.com/20091008/more-movies-tv-shows-for-youtube/">bump up</a> the number of &#8220;premium&#8221; content creators willing to hand over some of their stuff to the world&#8217;s biggest video site. Here&#8217;s yet another one: <a href="http://www.funnyordie.com/">Funny or Die</a>, the comedy site backed by Will Ferrell, Sequoia and HBO, among others.</p>
<p>You&#8217;ve been able to get Funny or Die clips on YouTube before, of course, but only with some effort&#8211;until now, the site has tried to keep views on its site or with its proprietary player.</p>
<p>That only worked in limited doses, though, so it makes plenty of sense for the site to expose its videos to a much larger audience. But note that even Funny or Die is trying to preserve a &#8220;windowed&#8221; approach to video distribution: Its clips will still premiere on the Funny or Die site before moving over to its <a href="http://www.youtube.com/user/FunnyorDie">YouTube channel</a>.</p>
<p>This isn&#8217;t nearly as important as deals Google&#8217;s (GOOG) site has already struck with providers like CBS (CBS), Disney (DIS), Time Warner&#8217;s (TWX) Turner, and Sony (SNE).</p>
<p>But it does provide me with a chance to run a YouTube clip featuring Will Ferrell. Warning&#8211;Mark Wahlberg drops a couple F-bombs in the last 30 seconds of this one:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowScriptAccess" value="always" /><param name="src" value="http://www.youtube.com/v/a2griwId2CY&amp;rel=0&amp;color1=0xb1b1b1&amp;color2=0xcfcfcf&amp;feature=player_profilepage&amp;fs=1" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/a2griwId2CY&amp;rel=0&amp;color1=0xb1b1b1&amp;color2=0xcfcfcf&amp;feature=player_profilepage&amp;fs=1" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<title>Apple's iTunes Pitch: TV for $30 a Month</title>
		<link>http://mediamemo.allthingsd.com/20091102/apples-itunes-pitch-tv-for-30-a-month/</link>
		<comments>http://mediamemo.allthingsd.com/20091102/apples-itunes-pitch-tv-for-30-a-month/#comments</comments>
		<pubDate>Mon, 02 Nov 2009 16:34:30 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12640</guid>
		<description><![CDATA[Would you pay $30 a month to watch TV via iTunes?

That's the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me. The industry finds this idea both tempting and terrifying.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/11/appletv.jpg"><img class="alignright size-medium wp-image-12654" title="appletv" src="http://mediamemo.allthingsd.com/files/2009/11/appletv-250x175.jpg" alt="appletv" width="250" height="175" /></a>Would you pay $30 a month to watch TV via iTunes?</p>
<p>That&#8217;s the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me.</p>
<p>Apple (AAPL) isn&#8217;t tying the proposed service to a specific piece of hardware, like its<a href="http://digitaldaily.allthingsd.com/20091029/new-from-apple-apple-tv-3-0/"> underwhelming Apple TV box</a> or its long-rumored tablet/slate device. Instead, the company is presenting the offer as an extension of its iTunes software and store, which already has <a href="http://digitaldaily.allthingsd.com/20090909/live-from-apples-lets-rock-event-itunes-9/">100 million customers</a>.</p>
<p>A so-called &#8220;over the top&#8221; service could <a href="http://digitaldaily.allthingsd.com/20090820/apple-triple-play-itunes-app-tv-and-apple-television/">theoretically rival the ones most consumers already  buy from cable TV operators</a>&#8211;if Apple is able to get enough buy-in from broadcast and cable TV programmers.</p>
<p>That&#8217;s a big if: Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.</p>
<p>Industry executives believe that if anyone jumps first, it will be Disney (DIS), since CEO Bob Iger has shown a willingness to experiment with Apple and iTunes in the past: In 2005, Disney was the first player to sell its programming on iTunes, via a-la-carte downloads. And Apple CEO Steve Jobs is Disney&#8217;s largest single shareholder, a result of Disney&#8217;s 2006 acquisition of Jobs&#8217;s Pixar animation studio. Apple didn&#8217;t respond to requests for comment.</p>
<p>Network executives I&#8217;ve talked to are intrigued by the idea&#8211;they are eager to find new revenue streams&#8211;but are also wary, for several reasons.</p>
<p>Cable networks, for instance, don&#8217;t want to threaten existing relationships and subscription fees from cable providers like Comcast (CMCSA). And programmers are also worried about the effect a subscription service would have on advertising revenue: Even if the service didn&#8217;t distribute TV programs until after their initial air date, that could cut into ratings, which now measure viewership over the course of several days.</p>
<p>But the move to deliver TV and movies over the Web is already well under way. Netflix (NFLX), for instance, already bundles free streaming movie and television along with its disc-by-mail subscription service. iTunes and Amazon (AMZN) rent movies on a one-off basis, and Google&#8217;s (GOOG) YouTube is trying out the same thing. Meanwhile, Hulu, the joint venture between GE&#8217;s (GE) NBC, News Corp.&#8217;s (NWS) Fox, and ABC, is figuring out how to launch a paid service that may include rentals, paid downloads or subscriptions.</p>
<p>So Apple&#8217;s proposed subscription service, which the company has floated in the past, is no longer a huge stretch. Says one executive briefed on the company&#8217;s plans: &#8220;I think they might get it right this time.&#8221;</p>
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		<title>CBS Digital Boss Quincy Smith's Not-Quite Exit Interview: "Hulu's a Great Service. That's Part of the Problem."</title>
		<link>http://mediamemo.allthingsd.com/20091028/quincy-smiths-not-quite-exit-interview-hulus-a-great-service-thats-part-of-the-problem/</link>
		<comments>http://mediamemo.allthingsd.com/20091028/quincy-smiths-not-quite-exit-interview-hulus-a-great-service-thats-part-of-the-problem/#comments</comments>
		<pubDate>Wed, 28 Oct 2009 20:31:56 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12519</guid>
		<description><![CDATA[The man who helped shape CBS's standalone Web video strategy explains himself, for the record.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/10/cbs_video_buttons.gif"><img class="alignright size-medium wp-image-12527" title="cbs_video_buttons" src="http://mediamemo.allthingsd.com/files/2009/10/cbs_video_buttons-250x163.gif" alt="cbs_video_buttons" width="250" height="163" /></a>Quincy Smith has <a href="http://kara.allthingsd.com/20091028/exclusive-cbs-digital-ceo-smith-to-leave-to-start-a-silicon-valley-advisory-firm-first-customer-cbs/">finally announced that he&#8217;s sort of leaving CBS</a> but will stay on as an adviser on its Web video strategy. So it seems like a good time for him to explain just what CBS&#8217;s Web video strategy is.</p>
<p>The short version is that unlike its broadcast peers, CBS (CBS) has been reluctant to make many of its shows available on the Web because it worries that doing so cuts into its core TV business.</p>
<p>So while GE&#8217;s (GE) NBC Universal and News Corp.&#8217;s (NWS) Fox put Hulu together, CBS stayed away. And when Disney (DIS) decided to join the joint venture earlier this year, <a href="http://mediamemo.allthingsd.com/20090402/hulu-makes-room-for-a-third-disney-deal-coming-soon/">CBS executives argued strenuously against the deal</a>. Instead, CBS has been content to use the Web as a promotional tool for TV via outlets like Google&#8217;s (GOOG) YouTube.</p>
<p>The longer version is below, via the transcript of a brief chat I had with Smith this afternoon to discuss his plans and the network&#8217;s. This is stuff he&#8217;s talked about before&#8211;to reporters, in industry forums, and even via <a href="http://www.techcrunch.com/2009/09/24/leaked-email-quincy-smith-wants-to-counter-reckless-hulu-streams/">emails</a> he wishes he hadn&#8217;t written&#8211;but I&#8217;m running it at length here.</p>
<p>Because 1) I think Smith does a good job of explaining the push-and-pull of Web viewership vs. Web economics that everyone in big media is grappling with, and 2) I want people to see just how difficult it is to keep up when Smith talks. He can get out a lot of words in a relatively short time.</p>
<p>I also had a quick chat with CBS CEO Les Moonves, who made many of the points Smith did, but with less verbiage: I&#8217;ll get you that transcript shortly, too.</p>
<p><strong>Peter Kafka:</strong> Since you&#8217;re going to be advising CBS&#8217;s Web video strategy, why don&#8217;t you lay out, for the record, where things stand?</p>
<p><strong>Quincy Smith:</strong></p>
<blockquote class="memo"><p>We recognize that the Web is two things. It&#8217;s both a new medium&#8230;and there my example has always been, look at fantasy football: When you&#8217;re nice enough to watch the Jets just pound the snot out of the Raiders on Sunday, on a CBS channel&#8230;on fantasy football on CBSSports.com, you start on the Tuesday before and end the Wednesday after.</p>
<p>And what are you doing? You&#8217;re personalizing it, you&#8217;re becoming more of a fan of the game [Smith goes on to praise CBSSports.com's feature set]. All of those things are additive, so when Sunday comes in, you&#8217;re actually more of a fan, and you&#8217;ve even more convinced you&#8217;re going to watch that broadcast show.</p>
<p>Now, I realize that sports is reasonably bulletproof, and a good case study to begin with versus some of the other programming, but the fact is, the Web is a new medium. So what do I also mean? Tech reviews on CNET, <a href="http://moneywatch.bnet.com/">Money Watch</a> being watched on BNET. GameSpot videogame reviews.</p>
<p>Access to content that CBS didn&#8217;t already have, that are additive&#8211;both in their own right online, with the margins that the CNET business is used to, and where we&#8217;re getting just stronger and stronger from a margin perspective&#8211;and potential content that can also be applied to our [local TV stations owned by CBS], our affiliates, our broadcast news, as well as the radio. So that&#8217;s the side of our business that is $600 million revenue and $50 million-plus profit on the bottom line.</p>
<p>The other side of the Web, the side that is most thought of by many journalists, is the threat of an IP-deliverer of video. And how you turn that threat into an opportunity.</p>
<p>And so, from that perspective, as  you know, we didn&#8217;t go ahead and say, &#8220;Okay, we&#8217;re going to lock down and stream, with all of our other peers in broadcast, and come up with the same rules, and embed and right-click this and go away.&#8221; I&#8217;ve never had a beef with Hulu. Hulu&#8217;s always worked as a great service. That&#8217;s part of the problem.</p>
<p>As a network, we need to make sure that our content is being seen where the dollars matter. And right now that&#8217;s on air. Opportunities like TV Everywhere&#8211;we&#8217;re not putting all of our eggs in that basket, though we are big advocates of it&#8211;are ones where you can actually take and expand and extend the television market online, so it doesn&#8217;t matter what screen you watch &#8220;CSI&#8221; on; what matters is that you watched it, it counts and you saw the ads.</p>
<p>But until that happens, it&#8217;s crazy to just stream the shows for zero economics. When in fact you can make a lot more money doing things that are additive and complementary to the rest of the CBS line. That&#8217;s where CBS interactive comes in now.</p></blockquote>
<p><strong>Kafka</strong>: But TV viewers are showing an increasing interest in watching their programs on the Web, whether from legal services like the Web or illegal torrents and pirate sites. Don&#8217;t you need to reach them where they are?</p>
<p><strong>Smith:</strong></p>
<blockquote class="memo"><p>Now, if you really look at those numbers, what they&#8217;ll say is [online and offline video are] both growing, right? We&#8217;re having the best year ever as America&#8217;s largest broadcast network, and I think that 99.9 percent of that&#8211;this is the quote I&#8217;ve never been able to get in there&#8211;is that&#8217;s [because] of the great content that we have. There&#8217;s some infinitesimal basis point that&#8217;s relevant [to CBS ratings because] we are making sure that when people watch it, they&#8217;re more inclined to watch it on television. For now.</p>
<p>Once that solution moves, once those economics move&#8211;whether that&#8217;s more ads, [higher] CPMs, more ad buyers&#8230;.You and I can say all day long, &#8220;We&#8217;re sold out on Web video. That&#8217;s going really well. It&#8217;s sold out.&#8221; Well, no kidding, it&#8217;s sold out. It&#8217;s a $700 million market. The television market is $120 billion. And of that, $700 million, half of those [ad buyers] are spending  90 percent of their time doing Google keywords, not buying online video.</p>
<p>The key is, how do you turn television buyers into video buyers? And that&#8217;s where a solution like TV Everywhere comes into play.</p>
<p>And by the way, looking at [Hulu CEO Jason] Kilar&#8217;s comments the other day, in Colorado [at an <a href="http://www.broadcastingcable.com/article/366619-CTAM_Summit_2009_Kilar_Hulu_Not_Giving_It_Away_for_Free.php">industry convention</a>], he sees that too. He&#8217;s more sophisticated on this stuff than most anybody. From the perspective of, he understands that&#8217;s where the big dollars are. And so he probably went at it as, &#8220;I&#8217;m going to aggregate all the people first, so hopefully things like TV everywhere come to us.&#8221; From our perspective at CBS, we&#8217;ve got to go to them.</p>
<p>I don&#8217;t hate Hulu. Hulu&#8217;s world-class video viewing. What I don&#8217;t understand is, why license all that content to something that works that well, that seamlessly, yet&#8211;without the economic model around it?</p></blockquote>
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		<title>How Much Will You Have to Pay for Hulu? Nothing. How Much Will You Pay for "Hulu Plus"? Good Question.</title>
		<link>http://mediamemo.allthingsd.com/20091023/how-much-will-you-have-to-pay-for-hulu-nothing-how-much-will-you-pay-for-hulu-plus-good-question/</link>
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		<pubDate>Fri, 23 Oct 2009 17:31:24 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12339</guid>
		<description><![CDATA[Is Hulu putting up a pay wall around its Web TV site? Nope.

Does Hulu want to charge people to watch Web TV? Yes.

Confused? Don't be.

Here's the explanation about what's going on at the premium online video site.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/04/the_office_promo_pic_nbc.jpg"><img class="alignright size-medium wp-image-6674" title="the_office_promo_pic_nbc" src="http://mediamemo.allthingsd.com/files/2009/04/the_office_promo_pic_nbc-250x274.jpg" alt="the_office_promo_pic_nbc" width="250" height="274" /></a></p>
<p>Is Hulu putting up a pay wall around its Web TV site? Nope.</p>
<p>Does Hulu want to charge people to watch Web TV? Yes.</p>
<p>Confused? Don&#8217;t be.</p>
<p>It&#8217;s pretty straightforward: Hulu, the joint venture between News Corp.&#8217;s (NWS) Fox, GE&#8217;s (GE) NBC Universal and Disney&#8217;s (DIS) ABC, doesn&#8217;t plan on charging people to watch the stuff it&#8217;s currently airing on the site&#8211;a mix of first-run shows from broadcast TV, a limited number of cable TV shows and a smattering of movies. But Hulu <em>is</em> trying to figure out how to create some kind of premium offering where you&#8217;ll pay for stuff that isn&#8217;t on the site right now.</p>
<p>That&#8217;s what Hulu&#8217;s backers have been saying for months, so it&#8217;s a little puzzling that News Corp. COO Chase Carey&#8217;s <a href="http://www.techmeme.com/091022/p58#a091022p58">comments</a> got folks worked up yesterday. Meanwhile, multiple sources familiar with Hulu&#8217;s plans tell me that&#8230;Hulu doesn&#8217;t actually have a plan yet, but it is trying to piece one together.</p>
<p>There are some pretty obvious ways to go here. Hulu could sell movies or TV shows on a pay-per-view basis, or it could sell subscriptions to shows it doesn&#8217;t offer now or to a deeper offering of shows it already has. You could call it &#8220;Hulu Plus&#8221; (no charge for that one, guys).</p>
<p>If you&#8217;re a fan of Fox&#8217;s &#8220;Family Guy,&#8221; for instance, Hulu is only of limited help: The site only has the most recent five episodes. So how much would you pay to watch the rest of them?</p>
<p>If you don&#8217;t have an answer for that, don&#8217;t worry&#8211;Team Hulu doesn&#8217;t know, either. Nor can they tell you if airing free shows on Hulu has cut into other revenue streams like broadcast TV advertising or DVD sales, even though &#8220;we&#8217;ve done a thousand regression analyses on this,&#8221; says an industry executive involved in the site.</p>
<p>Do bear in mind that this was a problem Hulu&#8217;s backers didn&#8217;t really envision when they were dreaming up the site; at the time, they were most concerned with building a video site that would allow them to barter with Google (GOOG) and Apple (AAPL).</p>
<p>Now they own one of the biggest video sites on the Web, one they say is performing ahead of plan. And Hulu is selling enough advertising that it&#8217;s coming close to reaching break-even, according to executives I spoke to this week.</p>
<p>But at the very least, adding a pay component to Hulu helps mollify those who fear the site is cannibalizing their existing businesses. Or who simply want another revenue stream. And a pay element dovetails with Hulu&#8217;s interest in joining up with the &#8220;authentication&#8221; movement pushed by cable guys like Comcast (CMCSA) and Time Warner (TWX).</p>
<p>Meanwhile, here&#8217;s the use case for Hulu that its backers originally envisioned&#8211;“catch up viewing.&#8221; I was on a plane when last night&#8217;s episode of the &#8220;The Office&#8221; aired, but I can watch the whole thing&#8211;with ads I can&#8217;t skip&#8211;on my laptop today. And so can you:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="202" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="src" value="http://www.hulu.com/embed/Am6vw9t252LFlt3NKzgGQg" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="202" src="http://www.hulu.com/embed/Am6vw9t252LFlt3NKzgGQg" allowfullscreen="true"></embed></object></p>
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		<title>Is There Anything You People Won't Watch on the Web? Nope: Video Views Up 25 Percent.</title>
		<link>http://mediamemo.allthingsd.com/20091013/is-there-anything-you-people-wont-watch-on-the-internet-nope-web-video-viewing-up-25/</link>
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		<pubDate>Tue, 13 Oct 2009 18:22:55 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12027</guid>
		<description><![CDATA[Is there anything you people won't watch online? Doesn't look like it, based on the newest Web video numbers from Nielsen. While stats show that the overall size of the Internet video audience has increased by 12 percent in the last year, the amount of video consumed has shot up 25 percent.]]></description>
			<content:encoded><![CDATA[<p>Is there anything you people won&#8217;t watch online? Doesn&#8217;t look like it, based on the newest Web video numbers from Nielsen. While stats show that the overall size of the Internet video audience has increased by 12 percent in the last year, the amount of video consumed has shot up 25 percent.</p>
<p>Check it out (click tables to enlarge):</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/10/Nielsen-total-views.png"><img class="alignnone size-full wp-image-12031" title="Nielsen total views" src="http://mediamemo.allthingsd.com/files/2009/10/Nielsen-total-views.png" alt="Nielsen total views" width="350" height="114" /></a></p>
<p>Note that these numbers are actually all <em>down</em> from August. Apparently some of you spent your last days before returning to work or school in front of your Web browser.</p>
<p>Meanwhile, Nielsen&#8217;s Top 10 list has the usual suspects. That is&#8211;Google&#8217;s (GOOG) YouTube and then everyone else. Interesting to note the disparity between total audience and total streams on Hulu compared to Yahoo (YHOO) and Microsoft&#8217;s (MSFT) MSN. Hulu is attracting a smaller but much more engaged audience than the big portals.</p>
<p>At some point, this could be a problem for the joint venture between News Corp.&#8217;s (NWS) Fox, GE&#8217;s (GE) NBC Universal and Disney&#8217;s (DIS) ABC since advertisers ultimately want reach. But it&#8217;s still astonishingly early for the site&#8211;recall that it only went out of beta in March 2008, and doesn&#8217;t have a major portal promoting it.</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/10/Nielsen-top-10.png"><img class="alignnone size-full wp-image-12034" title="Nielsen top 10" src="http://mediamemo.allthingsd.com/files/2009/10/Nielsen-top-10.png" alt="Nielsen top 10" width="350" height="152" /></a></p>
<p>One caveat: Note that for whatever reason, Web video publishers tend to push the numbers they get from comScore (SCOR) more than the Nielsen numbers. But directionally, they tend to say the same thing.</p>
<p>Allrighty, then. If you&#8217;re going to spend so much time watching Web clips, best to make sure you&#8217;re watching something excellent. Like this clip from last night&#8217;s &#8220;The Daily Show&#8221;&#8211;a classic evisceration of CNN. Jon Stewart and crew often go after the cable channel and its brethren, but this one is particularly good. Warning! It is more than 11 minutes long!</p>
<table style="font-family: arial; font-style: normal; font-variant: normal; font-weight: normal; font-size: 11px; line-height: normal; font-size-adjust: none; font-stretch: normal; color: #333333; background-color: #f5f5f5; height: 343px;" border="0" cellspacing="0" cellpadding="0" width="350">
<tbody>
<tr style="background-color:#e5e5e5" valign="middle">
<td style="padding:2px 1px 0px 5px;"><a style="color:#333; text-decoration:none; font-weight:bold;" href="http://www.thedailyshow.com" target="_blank">The Daily Show With Jon Stewart</a></td>
<td style="padding:2px 5px 0px 5px; text-align:right; font-weight:bold;">Mon &#8211; Thurs 11p / 10c</td>
</tr>
<tr style="height: 14px;" valign="middle">
<td style="padding:2px 1px 0px 5px;" colspan="2"><a style="color:#333; text-decoration:none; font-weight:bold;" href="http://www.thedailyshow.com/watch/mon-october-12-2009/cnn-leaves-it-there" target="_blank">CNN Leaves It There</a></td>
</tr>
<tr style="height: 14px; background-color: #353535;" valign="middle">
<td style="padding: 2px 5px 0px; overflow: hidden; width: 360px; text-align: right;" colspan="2"><a style="color:#96deff; text-decoration:none; font-weight:bold;" href="http://www.thedailyshow.com/" target="_blank">www.thedailyshow.com</a></td>
</tr>
<tr valign="middle">
<td style="padding:0px;" colspan="2"><object style="display:block" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="301" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="bgcolor" value="#000000" /><param name="flashvars" value="autoPlay=false" /><param name="src" value="http://media.mtvnservices.com/mgid:cms:item:comedycentral.com:251763" /><param name="wmode" value="window" /><param name="allowfullscreen" value="true" /><embed style="display:block" type="application/x-shockwave-flash" width="350" height="301" src="http://media.mtvnservices.com/mgid:cms:item:comedycentral.com:251763" allowfullscreen="true" wmode="window" flashvars="autoPlay=false" bgcolor="#000000"></embed></object></td>
</tr>
<tr style="height: 18px;" valign="middle">
<td style="padding:0px;" colspan="2">
<table style="margin: 0px; text-align: center; height: 100%;" border="0" cellspacing="0" cellpadding="0" width="100%">
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<td style="padding: 3px; width: 33%;"><a style="font:10px arial; color:#333; text-decoration:none;" href="http://www.thedailyshow.com/full-episodes" target="_blank">Daily Show<br />
Full Episodes</a></td>
<td style="padding: 3px; width: 33%;"><a style="font:10px arial; color:#333; text-decoration:none;" href="http://www.indecisionforever.com" target="_blank">Political Humor</a></td>
<td style="padding: 3px; width: 33%;"><a style="font:10px arial; color:#333; text-decoration:none;" href="http://www.indecisionforever.com/2009/09/23/ron-paul-on-the-daily-show-tuesday-sept-29/" target="_blank">Ron Paul Interview</a></td>
</tr>
</tbody>
</table>
</td>
</tr>
</tbody>
</table>
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		<title>Disney "Transitioning" Ideal Bite, Its $20 Million "Green" Lifestyle Newsletter</title>
		<link>http://mediamemo.allthingsd.com/20091012/disney-transitioning-ideal-bite-its-green-lifestyle-newsletter/</link>
		<comments>http://mediamemo.allthingsd.com/20091012/disney-transitioning-ideal-bite-its-green-lifestyle-newsletter/#comments</comments>
		<pubDate>Tue, 13 Oct 2009 01:27:32 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11987</guid>
		<description><![CDATA[Ideal Bite, the green-flavored lifestyle newsletter business Disney bought in June 2008, faces an uncertain fate: Its parent company is shuttling the unit from one corporate silo to another and says it's not sure what will become of it once that happens. Translation: The job market is going to see a few more resumes.]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.idealbite.com/"><a href="http://mediamemo.allthingsd.com/files/2009/10/heather_yoga.jpg"><img class="alignright size-medium wp-image-11992" title="heather_yoga" src="http://mediamemo.allthingsd.com/files/2009/10/heather_yoga-234x300.jpg" alt="heather_yoga" width="234" height="300" /></a>Ideal Bite</a>, the green-flavored lifestyle newsletter Disney bought in June 2008, faces an uncertain fate: Its parent company is shuttling the unit from one corporate silo to another and says it&#8217;s not sure what will become of it once that happens.</p>
<p>For the record: Disney (DIS) says it always intended to move the company, which offers &#8220;bite-sized ideas for green living&#8221; via email and a Web site, from its corporate strategy group to its interactive division, which will happen later this year. At that point, &#8220;it will still continue in some form,&#8221; says spokesman Michelle Bergman.</p>
<p>That doesn&#8217;t sound good. Disney says it plans to conduct a review of the unit, so it&#8217;s not ready to answer some basic questions about the email newsletter company. Like: Are co-founders Heather Stephenson (who lives and works in San Francisco) and Jennifer Boulden (who until this summer lived and worked in Bozeman, Mont.; she&#8217;s now in Los Angeles, I&#8217;m told) staying on? Will Disney have to take a write-down on the property? Will there be layoffs? &#8220;It&#8217;s too early to say. I can&#8217;t tell you,&#8221; Bergman says.</p>
<p>Okay. But If I had to bet, I&#8217;d say at least some of the dozen-plus employees will be hitting the job market.</p>
<p>Disney paid a reported <a href="http://paidcontent.org/article/419-disney-buys-pittman-backed-green-food-site-idealbite/">$20 million</a> for the property a year and a half ago, and the plan was to create a big green-centered business around it, but that hasn&#8217;t panned out, sources said. The company, founded in 2005, is one of the many lifestyle newsletter businesses backed by Bob Pittman&#8217;s Pilot Group.</p>
<p><a href="http://kara.allthingsd.com/20080806/the-125-million-sweet-dailycandy-revenge-of-bob-pitchman/">Comcast (CMCSA) bought DailyCandy</a>, the best known of Pittman&#8217;s stable, for $125 million a little more than a year ago. That was surely one of the last &#8220;pre-Lehman&#8221; Web 2.0 M&#038;A deals, but grunts and murmurs out of Philadelphia and Pilot indicate the business has held up during the recession. And <a href="http://www.thrillist.com/list/New+York">Thrillist</a>, a &#8220;DailyCandy for dudes&#8221; effort that has yet to sell, seems to be booming.</p>
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		<title>Has YouTube Finally Figured Out How to Play Nicely With Big Media?</title>
		<link>http://mediamemo.allthingsd.com/20091008/more-movies-tv-shows-for-youtube/</link>
		<comments>http://mediamemo.allthingsd.com/20091008/more-movies-tv-shows-for-youtube/#comments</comments>
		<pubDate>Thu, 08 Oct 2009 19:52:55 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11907</guid>
		<description><![CDATA[YouTube sneaked up on big media, then scared the hell out of them, then tried to do business with them, more or less unsuccessfully.

Now, three years after Google plunked down $1.6 billion for the video site, it seems to have figured out an approach that works for at least some big players: Hand over a chunk of the site to content creators, who get to control it, sell ads on it, program it with their stuff and share some of the ad dollars. Newest example, reportedly: Britain's Channel 4.]]></description>
			<content:encoded><![CDATA[<p><img src="http://mediamemo.allthingsd.com/files/2009/10/roadrunner-250x187.jpg" alt="roadrunner" title="roadrunner" width="250" height="187" class="alignright size-medium wp-image-11915" />YouTube sneaked up on big media, then scared the hell out of them, then tried to do business with them, more or less unsuccessfully.</p>
<p>Now, three years after Google (GOOG) plunked down $1.6 billion for the video site, it seems to have figured out an approach that works for at least some big players: Hand over a chunk of the site to content creators, who get to control it, sell ads on it, program it with their stuff and share some of the ad dollars.</p>
<p>It&#8217;s a pretty straightforward compromise: YouTube gets some of the ad dollars that &#8220;premium&#8221; content&#8211;stuff you&#8217;d see on a TV screen, basically&#8211;can generate; content creators get access to the the gazillion eyeballs that the world&#8217;s biggest video site attracts. Examples: See the pacts that Sony (SNE), Disney (DIS), Time Warner&#8217;s (TWX) Turner, Warner Music Group (WMG) and Universal Music have hammered out in recent months.</p>
<p>And that sounds like the deal that YouTube and Britain&#8217;s <a href="http://www.channel4.com/">Channel 4</a> have reached. <a href="http://www.telegraph.co.uk/technology/google/6273942/YouTube-to-sign-landmark-content-deal-with-Channel-4.html">Telegraph</a>:</p>
<blockquote class="memo"><p>YouTube and Channel 4 have been in talks for at least the last six months and a contract is expected to be signed imminently. The Telegraph understands that Channel 4 has negotiated the right to sell its own advertising around its content on YouTube and share the revenue with the Google-owned site.</p>
<p>A senior television source close to Channel 4 said: &#8220;It was key for Channel 4 to be able to sell the advertising around its own inventory so it could extract maximum value from the deal and retain commercial control over its own property.</p>
<p>&#8220;When the Channel 4 content formally appears on YouTube, it will be branded exactly the same way as it is on the Channel 4 website. It will be a fully Channel 4 branded space and look as if someone has picked up 4 on Demand (Channel 4’s online catch up service) and put it on YouTube.&#8221;</p>
<p>&#8230;The partnership will be the first formal arrangement YouTube has agreed with a British broadcaster in which the majority of its content will be shown in full on the video-sharing site.</p></blockquote>
<p>No comment from YouTube. If the report doesn&#8217;t pan out, I&#8217;m assuming it won&#8217;t have any impact on anyone reading this in the U.S.: The Web is worldwide, but these content deals tend to be specific to various territories, which means you won&#8217;t be able to watch British programming from the States. Fair enough: My non-U.S. readers always gripe about not being able to watch Hulu clips.</p>
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		<title>Report: Comcast Buying NBC for $35 Billion. Comcast: "Inaccurate"</title>
		<link>http://mediamemo.allthingsd.com/20090930/report-comcast-buying-nbc-for-35-billion/</link>
		<comments>http://mediamemo.allthingsd.com/20090930/report-comcast-buying-nbc-for-35-billion/#comments</comments>
		<pubDate>Thu, 01 Oct 2009 01:23:37 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11592</guid>
		<description><![CDATA[Here's the big media deal everyone has been waiting for. Or at least, here's the report: Sharon Waxman of TheWrap reports that cable giant Comcast is buying all of NBC Universal from GE for $35 billion. Comcast says the report is "inaccurate."]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/04/the_office_promo_pic_nbc.jpg"><img class="alignright size-medium wp-image-6674" title="the_office_promo_pic_nbc" src="http://mediamemo.allthingsd.com/files/2009/04/the_office_promo_pic_nbc-250x274.jpg" alt="the_office_promo_pic_nbc" width="250" height="274" /></a>Here&#8217;s the big media deal everyone has been waiting for. Or at least, here&#8217;s the report: <a href="http://www.thewrap.com/article/exclusive-comcast-buy-nbc-universal-general-electric-8002">Sharon Waxman of TheWrap</a> says cable giant Comcast is buying all of NBC Universal from GE for $35 billion.</p>
<p>The deal was hammered out by reps at a Tuesday meeting, Waxman reports, citing &#8220;two individuals informed about the meeting.&#8221; The $35 billion price tag happens to be the value that a recent JP Morgan report assigned to the company.</p>
<p>Comcast (CMCSA), in a statement, says the story is untrue: &#8220;While we do not normally comment on M&amp;A rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate.&#8221; NBC Universal has no comment.</p>
<p>Clintonian parsers will note that Comcast&#8217;s denial has potential wiggle room: It isn&#8217;t denying, for instance, that the two companies had or are having talks. On the other hand, this is exactly the situation where corporate PR protocol calls for the &#8220;we don&#8217;t comment on market rumor and speculation&#8221; line. That way, you have the option of updating your statement if the story does turn out to be true. And for what it&#8217;s worth, I can&#8217;t recall the last time I saw a big, publicly traded company respond to an M&amp;A story with this specificity.</p>
<p>UPDATE: The <a href="http://latimesblogs.latimes.com/entertainmentnewsbuzz/2009/09/comcast-wants-nbc-universal-.html">Los Angeles Times&#8217;s Joe Flint</a> now says that Comcast is &#8220;kicking the tires&#8221; at NBCU, according to &#8221;people familiar with the situation.&#8221; His report is much more hedged than Waxman&#8217;s.</p>
<p>All that said, this is a tie-up that has a first-blush logic to it: Comcast is flush with cash and could presumably take on more debt if it wanted to, and the company has shown an interest in branching out into content before. In 2004, it made a run at Disney (DIS). And the drumbeat for GE (GE) to dump its 80 percent stake in NBCU has been more or less constant, even while the industrial conglomerate insisted it had no interest in selling.</p>
<p>Those drumbeats get louder every year around this time, by the way. That&#8217;s because Vivendi, which owns the remaining 20 percent stake in NBCU, has a put option that kicks in every November and that could <a href="http://mediamemo.allthingsd.com/20090917/back-for-yet-another-season-the-what-will-ge-do-with-nbc-show/">theoretically force GE into buying out the stake</a> or spinning the whole thing out to the public.</p>
<p>More theoretical ammunition for a deal: Comcast is one of the few potential buyers that could swallow up all of NBCU. While there might be lots of people interested in NBCU&#8217;s cable properties (USA, Bravo, SciFi, etc.), there aren&#8217;t many who also want the company&#8217;s flailing broadcast property.</p>
<p>And while Universal&#8217;s film library is potentially attractive to some buyers, many of them&#8211;like Time Warner (TWX), for instance&#8211;have no interest in the film studio because they already have one.</p>
<p>If you want to play out the theoretical implications for digital, things could get very interesting. NBC is one of the founding partners at Hulu, the free Web TV portal that&#8217;s caused consternation for Comcast and other cable providers, which worry that the site is undermining the value of the TV programming they spend big money on. And Comcast and Time Warner have been trying out a &#8220;TV Everywhere&#8221; strategy that is, in part, a reaction to Hulu&#8217;s initial success. But let&#8217;s let the dust settle for a minute before we head in that direction.</p>
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		<title>This Just In: YouTube Is Ginormous!</title>
		<link>http://mediamemo.allthingsd.com/20090928/this-just-in-youtube-is-ginormous/</link>
		<comments>http://mediamemo.allthingsd.com/20090928/this-just-in-youtube-is-ginormous/#comments</comments>
		<pubDate>Mon, 28 Sep 2009 22:02:31 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11471</guid>
		<description><![CDATA[You already know this, but it's always good to be reminded: In online video, there's YouTube, and then there's everybody else. Today's data point: ComScore's August video report, which shows Google's video site generating 10 billion views and owning 39.6 percent of the market. That's 10 billion views, and that's just counting Web surfers from the U.S. Factor in international visitors and...it would be a lot bigger.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/07/kingkonglives.jpg"><img class="alignright size-medium wp-image-9473" title="kingkonglives" src="http://mediamemo.allthingsd.com/files/2009/07/kingkonglives-202x300.jpg" alt="kingkonglives" width="168" height="250" /></a>You already know this, but it&#8217;s always good to be reminded: In online video, there&#8217;s YouTube, and then there&#8217;s everybody else. Today&#8217;s data point: <a href="http://comscore.com/Press_Events/Press_Releases/2009/9/Google_Sites_Surpasses_10_Billion_Video_Views_in_August">ComScore&#8217;s (SCOR) August video report</a>, which shows Google&#8217;s video site generating 10 billion views and owning 39.6 percent of the market.</p>
<p>That&#8217;s 10 <em>billion</em> views, and that&#8217;s just counting Web surfers from the U.S. Factor in international visitors and&#8230;it would be a lot bigger.</p>
<p>The rest of the rankings look about the same as they as they always do&#8211;puny compared to Google&#8217;s (GOOG) status. That is, if you add up the next nine biggest sites, they won&#8217;t come close to matching YouTube&#8217;s share. But for the record, Hulu gained share but lost a position to Fox Interactive Media/MySpace, its corporate cousin from News Corp (NWS). And Time Warner&#8217;s (TWX) AOL replaced Disney&#8217;s (DIS) ABC at the bottom of the rankings. Click table to enlarge:<br />
<a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/09/comscore-chart.png"><img class="alignnone size-full wp-image-11472" title="comscore chart" src="http://mediamemo.allthingsd.com/files/2009/09/comscore-chart.png" alt="comscore chart" width="350" height="310" /></a></p>
<p>Yet another reason it&#8217;s amazing that it took <a href="http://mediamemo.allthingsd.com/20090928/how-the-youtube-warner-music-deal-got-done-meet-vevo-jr/">Warner Music Group nine months to hammer out a deal to get its video back on YouTube</a>&#8211;and bear in mind that they&#8217;re not there yet. If you&#8217;re in the music video business and you pull your videos off the world&#8217;s biggest video site, you had better have a very good reason for doing so.</p>
<p>In other shocking news: This movie is 12 years old. That&#8217;s older than Google!</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/jTmXHvGZiSY&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/jTmXHvGZiSY&amp;hl=en&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<title>Universal Music Gets Slapped in Court. What Does This Mean for Veoh&#8211;and YouTube?</title>
		<link>http://mediamemo.allthingsd.com/20090914/universal-music-gets-slapped-in-court-what-does-that-mean-for-veoh-and-youtube/</link>
		<comments>http://mediamemo.allthingsd.com/20090914/universal-music-gets-slapped-in-court-what-does-that-mean-for-veoh-and-youtube/#comments</comments>
		<pubDate>Tue, 15 Sep 2009 05:03:40 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10935</guid>
		<description><![CDATA[Just how big a deal was a federal judge's ruling Monday in the copyright-infringement fight between Veoh and Universal Music Group? Depends on who you ask, of course.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/pacino.png"><img class="alignright size-medium wp-image-10955" title="pacino" src="http://mediamemo.allthingsd.com/files/2009/09/pacino-250x138.png" alt="pacino" width="250" height="138" /></a>Just how big a deal was a federal judge&#8217;s ruling Monday in the copyright-infringement fight between Veoh and Universal Music Group?</p>
<p>Depends on who you ask, of course.</p>
<p>Executives at Veoh say Judge A. Howard Matz has given them a new lease on life, and at least some of the company&#8217;s investors are doing some <a href="http://twitter.com/ToddDOwl/status/3983519223">chest-beating</a>. Universal, the world&#8217;s largest music label, says it&#8217;s confident it will win an appeal.</p>
<p>You can get the same split opinion by asking two different companies that happen to be locked in a similar fight. Executives at Google&#8217;s (GOOG) YouTube, which is trying to fend off a copyright suit filed by Viacom (VIA), say the Veoh ruling bolsters their case. You can guess what Viacom says.</p>
<p>The gist of the fight: Universal says Veoh didn&#8217;t try hard enough to keep illegally uploaded material off the video site; Veoh says it made a good-faith effort. Matz agreed with Veoh and tossed out Universal&#8217;s claims.</p>
<p>Even if you disregard the posturing, it&#8217;s fair to say there&#8217;s a genuine debate over the ruling&#8217;s meaning. Veoh, along with some of my bloggy colleagues, is treating the decision as the final word on Web copyright disputes, or at least those that involve the <a href="http://en.wikipedia.org/wiki/Digital_Millennium_Copyright_Act">Digital Millennium Copyright Act</a>.</p>
<p>And Matz certainly slapped Universal around. But it&#8217;s worth noting that copyright owners have lost Web cases in the Ninth District before, but ultimately won on appeal. Ask <a href="http://en.wikipedia.org/wiki/Grokster">Grokster</a>, the now-defunct file-sharing network that dissolved after a 2005 Supreme Court ruling.</p>
<p>You can read all of Matz&#8217;s judgment at the bottom of this post. But this excerpt, in which he argues that simply having illegal material on your site isn&#8217;t a crime, and neither is knowing about it (at least, in a general sense), gives you a good idea of Matz&#8217;s thrust and tone:</p>
<blockquote class="memo"><p>No doubt it is common knowledge that most websites that allow users to contribute material contain infringing items. If such general awareness were enough to raise a “red flag,” the DMCA safe harbor would not serve its purpose of &#8220;facilitat[ing] the robust development and world-wide expansion of electronic commerce, communications, research, development, and education in the digital age,” and “balanc[ing] the interests of content owners, on-line and other service providers, and information users in a way that will foster the continued development of electronic commerce and the growth of the Internet.&#8221;</p></blockquote>
<p>Legal debate aside, the ruling does give a practical benefit for Veoh. It allows the company to fetch a higher price on the auction block.</p>
<p><a href="http://mediamemo.allthingsd.com/20090706/is-veoh-the-next-video-site-to-go/">CEO Dmitry Shapiro has been shopping the site to bidders over the summer</a>, and as of a few months ago, he was willing to accept less than the $70 million investors like Time Warner (TWX), Goldman Sachs (GS) and former Disney (DIS) CEO Michael Eisner have poured into the site.</p>
<p>Selling a Web video site in 2009 is a tough challenge without a handicap, but the lawsuit was a big one. It was a huge time-and-money suck&#8211;Veoh may have spent as much as $6 million fighting the case in the last two years&#8211;and more important, the unresolved case was a huge liability. Who wants to buy a lawsuit?</p>
<p>Now, Shapiro says, Veoh&#8217;s options include not selling at all. He insists that some of Veoh&#8217;s existing backers are willing to recapitalize the company and that new investors might join in as well.</p>
<p>I&#8217;ll take him at his word, but if I had to bet, I&#8217;d wager that Veoh ends up getting acquired sooner than later. Maybe quite soon&#8211;the company has a board meeting today.</p>
<p>Wonder what they&#8217;ll talk about?</p>
<p><object id="_ds_11293076" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="550" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="name" value="_ds_11293076" /><param name="FlashVars" value="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="src" value="http://viewer.docstoc.com/" /><param name="flashvars" value="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowfullscreen" value="true" /><embed id="_ds_11293076" type="application/x-shockwave-flash" width="350" height="550" src="http://viewer.docstoc.com/" allowfullscreen="true" allowscriptaccess="always" flashvars="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " name="_ds_11293076"></embed></object><br />
<span style="font-size: xx-small;"><a href="http://www.docstoc.com/docs/11293076/VEOH"> VEOH</a> &#8211; </span></p>
<p>Still here? How about that? You get a bonus video! (But be warned: Pacino chews up a lot of scenery here, and there is some impassioned cursing.)</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/u8xERDVD8kw&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/u8xERDVD8kw&amp;hl=en&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<title>Is There Anything We Won't Watch? Web Video Booming, but TV Still Growing, Too.</title>
		<link>http://mediamemo.allthingsd.com/20090902/is-there-anything-we-wont-watch-web-video-booming-but-tv-still-growing-too/</link>
		<comments>http://mediamemo.allthingsd.com/20090902/is-there-anything-we-wont-watch-web-video-booming-but-tv-still-growing-too/#comments</comments>
		<pubDate>Wed, 02 Sep 2009 18:30:02 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10656</guid>
		<description><![CDATA[Sure, you're watching lots of video on the Web. But that doesn't mean you're cutting back on your boob-tube time. At least not yet.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/poltergeist.jpg"><img class="alignright size-medium wp-image-10674" title="poltergeist" src="http://mediamemo.allthingsd.com/files/2009/09/poltergeist-250x205.jpg" alt="poltergeist" width="250" height="205" /></a>Plenty of smart folks keep gathering around TV&#8217;s grave so that they can throw dirt on it, but it&#8217;s not dead yet. In fact, it&#8217;s still growing, says Nielsen: More Americans spent more time watching TV this spring than they did a year ago.</p>
<p>The numbers come from Nielsen&#8217;s quarterly &#8220;Three Screen&#8221; report, which measures eyeballs watching video on TV, on the Web and on mobile devices. And just like <a href="http://mediamemo.allthingsd.com/20090520/americans-cant-find-a-screen-they-wont-watch-tv-web-video-both-up/">the report Nielsen put out three months ago</a>, it shows that even while Americans gobble up more online video, they&#8217;re still watching as much TV as they ever have. More, even: The number of viewers increased by 0.9 percent, while the time they spent watching TV increased 1.5 percent.</p>
<p>Here&#8217;s how the numbers break down (click tables below to enlarge):</p>
<p>Total number of viewers:</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/09/nielsen-video-usage.png"><img class="alignnone size-full wp-image-10666" title="nielsen-video-usage" src="http://mediamemo.allthingsd.com/files/2009/09/nielsen-video-usage.png" alt="nielsen-video-usage" width="350" height="163" /></a></p>
<p>Time spent viewing:<br />
<a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/09/nielsen-video-time-spent.png"><img class="alignnone size-full wp-image-10667" title="nielsen-video-time-spent" src="http://mediamemo.allthingsd.com/files/2009/09/nielsen-video-time-spent.png" alt="nielsen-video-time-spent" width="350" height="114" /></a></p>
<p>Two different theories, which are not mutually exclusive, may explain the ever-increasing amount of video we&#8217;re supposedly gorging on:</p>
<ul>
<li>We&#8217;re out of work or underemployed, and we&#8217;re filling those hours with sitcoms and dogs-on-skateboard clips.</li>
<li>We&#8217;re multitasking and gorging on all of this stuff at the same time.</li>
</ul>
<p>On that last theory: Nielsen says 57 percent of us are spending at least an hour a month watching Web video and TV at the same time. We&#8217;re much more likely to turn on the TV while we&#8217;re Web-surfing than vice versa, though.</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/09/nielsen-tv-web.png"><img class="alignnone size-full wp-image-10668" title="nielsen-tv-web" src="http://mediamemo.allthingsd.com/files/2009/09/nielsen-tv-web.png" alt="nielsen-tv-web" width="350" height="139" /></a></p>
<p>No surprise, by the way, to see that people are spending more time watching Web video. But interesting to note that while the universe of mobile video watchers has increased, they&#8217;re spending less time watching.</p>
<p>For what it&#8217;s worth, Nielsen says that short-form clips&#8211;like those from Google&#8217;s (GOOG) YouTube&#8211;make up 83 percent of Web video viewing, while &#8220;name-brand TV network content&#8221; makes up the majority of mobile video. Note that Hulu, the joint venture between News Corp.&#8217;s (NWS) Fox, GE&#8217;s (GE) NBC and Disney&#8217;s (DIS) ABC, doesn&#8217;t have a mobile option, so it can&#8217;t claim credit for those eyeballs.</p>
<p>Too many numbers! Time for video. Here&#8217;s a clip of the Minnesota Vikings&#8217; (!) Brett Favre from this week&#8217;s &#8220;Monday Night Football&#8221; game. This one has been seen more than half a million times, but there&#8217;s no way it&#8217;s legal. So it will go down sooner or later&#8211;both the NFL and ESPN are pretty zealous about this stuff.</p>
<p>But right now it&#8217;s promoted for all to see on YouTube&#8217;s homepage. Which means there are still some kinks in the company&#8217;s vaunted &#8220;ContentID&#8221; program.</p>
<p><object width="350" height="212" data="http://www.youtube.com/v/dQCSYvHuoRE&amp;hl=en&amp;fs=1&amp;" type="application/x-shockwave-flash"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/dQCSYvHuoRE&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /></object></p>
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		<title>Is Google Getting a Hollywood Tour Guide? Former William Morris Boss Jim Wiatt May Take YouTube Consulting Gig.</title>
		<link>http://mediamemo.allthingsd.com/20090902/is-google-getting-a-hollywood-tour-guide-former-william-morris-boss-jim-wiatt-may-take-youtube-consulting-gig/</link>
		<comments>http://mediamemo.allthingsd.com/20090902/is-google-getting-a-hollywood-tour-guide-former-william-morris-boss-jim-wiatt-may-take-youtube-consulting-gig/#comments</comments>
		<pubDate>Wed, 02 Sep 2009 10:00:50 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10619</guid>
		<description><![CDATA[Does Google need a Hollywood guide? It may be getting one: Jim Wiatt, the former head of the fabled William Morris talent agency, has been talking to the company about a consulting gig for its YouTube video site.

Wiatt, who is leaving his old job in the aftermath of his agency's highly contentious merger with the Endeavor agency, discussed the idea with Google and YouTube executives in Mountain View last week, multiple sources said.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/hollywood.jpg"><img class="alignright size-medium wp-image-10621" title="hollywood" src="http://mediamemo.allthingsd.com/files/2009/09/hollywood-250x166.jpg" alt="hollywood" width="250" height="166" /></a></p>
<p>Does Google need a Hollywood guide?</p>
<p>It may be getting one: Jim Wiatt, the former head of the fabled William Morris talent agency, has been talking to the company about a consulting gig for its YouTube video site.</p>
<p>Wiatt, who is <a href="http://www.deadlinehollywooddaily.com/urgent-jim-wiatt-looks-to-be-leaving-wme-before-it-starts/">leaving his old job</a> in the aftermath of his agency&#8217;s highly contentious merger with the Endeavor agency, discussed the idea with Google and YouTube executives in Mountain View last week, multiple sources said.</p>
<p>Wiatt hasn&#8217;t signed a deal and may end up pursuing something else instead, I&#8217;m told.</p>
<p>But the role would make sense, given that Wiatt has already served as a de facto guide for Google CEO Eric Schmidt, who has been trying to ingratiate his company with studio and network executives for some time. </p>
<p>(Schmidt has spent enough time in Hollywood to justify plunking down <a href="http://latimesblogs.latimes.com/lanow/2008/11/montecito-where.html">a reported $20 million for an estate in Montecito</a>, a wealthy resort town an hour or so outside of Beverly Hills.)</p>
<p>Google (GOOG) has tried to convince Hollywood to bring more of its content over to the world&#8217;s largest video site, but its biggest players have so far resisted, offering the site promotional trailers but little else. Meanwhile Hulu, the joint venture between News Corp.&#8217;s (NWS) Fox, GE&#8217;s (GE) NBC and Disney&#8217;s (DIS) ABC has staked out a reputation as the go-to site for free &#8220;premium&#8221; movies and TV shows.</p>
<p>Earlier this year, reports <a href="http://www.nytimes.com/2009/01/29/business/media/29youtube.html?_r=1">surfaced</a> that William Morris and Google had reached a pact that would steer the agency&#8217;s high-profile clients to make and star in YouTube videos.</p>
<p>Neither company ever formally acknowledged the so-called &#8220;YouTube Gold&#8221; program, and it&#8217;s not clear if it ever got off the ground. But, in any case, William Morris has more or less been absorbed by onetime rival Endeavor, headed by Ari Emanuel, leaving Wiatt looking for other work.</p>
<p>Wiatt, via a spokesman, declined to comment. YouTube offered up this statement via email: &#8220;We are constantly exploring opportunities to reward the talented members of the YouTube community, including helping to distribute their content around the Web and beyond.&#8221;</p>
<p>[<em>News Corp. owns Dow Jones, which owns this Web site.</em>]</p>
<p>[<em>Image credit: <a href="http://www.flickr.com/photos/34065722@N00/1151601662">Sorn</a></em>]</p>
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