October 19, 2006

Google thinking about Revenue sharing with Video content providers

Over the past several weeks, and continuing into the present time, Google has been actively attacking the problem of copyright violations for videos posted to its search properties by entering into complex revenue sharing agreements with major content providers, such as studios. This news was revealed during Google's third quarter 2006 conference call late Thursday afternoon.

But many of the formulas and the variables for those deals, these same executives admitted, are too complex to be explained to analysts, and some are actually still being determined, especially as the Web continues to evolve.

The implication here is that Google's agreements with content providers may be comprised, at least in part, of "agreements to agree" on a revenue sharing system, once it is determined where that revenue will eventually come from. Yet it's these agreements which will forestall content providers from challenging Google's rights to provide videos, especially as it takes control of leading streaming video provider YouTube.