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Wednesday, October 18, 2006

Napster redux: Universal sues video-sharing websites.

Score one for Lars and the boys. Saw this on Drudge:
“In separate lawsuits, Universal alleged that Grouper.com – recently acquired by Sony Pictures Entertainment – and Bolt.com had built up traffic by encouraging users to share music videos from its artists without their permission.”

Note to Universal: What do you think YouTube did prior to your deal with them?

What do you think any online community site that’s ‘free’ does? It’s a portal for someone else’s content until you build enough interest and traffic to then sell the site and come over from the dark side. People say the dot.com era is dead? Oh no. It’s alive and well, just operating under a new Facebook.

In this case, YouTube (fresh off a deal to be bought by Google), benefits further after signing a licensing deal with Universal, then gets Universal’s sharks to go after the competition. Nice.

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