Video piracy draws revenue… for the pirated
ADOTAS – The battle over copyrighted material illegally uploaded onto YouTube took an interesting turn last year as companies stopped filing suits and started claiming the content. YouTube then sold advertising on the vids and split the revenue with the copyright owners — the company told The New York Times that unauthorized uploads account for a third of this revenue.
Yesterday YouTube announced it has reached agreements with three companies whose software facilitates converting video and audio into digital files, a move that will assist in identifying clips almost immediately after a program or live event is aired or released. It will also ease the process when media companies upload content into the video site’s reference library of copyrighted material as well.
Near-instant recognition of clips as soon as they are uploaded should help content owners make easy cash from ads tacked on the video pages. YouTube noted that companies that monetized clips improperly uploaded — instead of demanding their immediate removal — on average doubled the number of streams they cashed in on.
So will media companies invite unauthorized uploaders to plunder away? Not quite — the ad revenue is not significant enough. However, many companies (excluding Viacom and its $1 billion copyright infringement suit) seem to be looking the other way when they’re pirated — the other way being the direction of the revenue check.
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