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YouTube Goes Global, but Ad Revenues Still Not Good

By Rob Mead

DOWNLOAD VIRAL VIDEOS IN JAPANESE AND FRENCH!
YouTube recently announced that web site users in Brazil, France, Ireland, Italy, Japan, Netherlands, Poland, Spain and Great Britain will now have the ability to visit YouTube locally and get all the information regarding the YouTube videos in their native languages. The chief financial officer of YouTube, Steve Chen, stated that these individual countries will now have a local version of YouTube that will allow them to access a central database of videos as well as show them how their own country is ranking certain videos as opposed to the American version of video-ranking.

150 content partners have already been contacted by YouTube so that they will be able to supply YouTube with various sports and entertainment clips from various companies such as the BBC, France 24 and the Real Madrid Spanish soccer team. This new international touch to YouTube was made possible when Google bought the video-sharing behemoth in November of 2006. Google had the financial backing and resources that allowed such an international transaction to take place.

MORE AD REVENUE MUST BE FOUND TO BRING YOUTUBE INTO THE BLACK
Without a clear ad revenue structure that YouTube is in desperate need of to ensure great financial rewards after Google paid $1.6 billion for the site back in 2006. That is a very heft bill that Google must somehow find a way to recover within the next few years, or this will always be the fly in the ointment as far as Google's huge success goes.

Most analysts agree that Google bought YouTube to help them generate more ad revenue internationally not in just a few months, but for the long term, maybe not excpecting to recoup the $1.6 billion for at least eight to ten years. YouTube currently is also embroiled in a massive lawsuit brought on by the entertainment industry who insists that users who upload copyrighted material should be penalized at best and put in jail at the worst, and YouTube should take take all copyrighted material immediately.

VIACOM NOT AMUSED AT YOUTUBE ANTICS
The main entertainment lawsuit involves Viacom, who own MTV and Comedy Central, among other televison production companies. They believe that when YouTube subscribers upload episodes of South Park and the Daily Show, YouTube should automatically shut down the video feed so that no one will be able to see these episodes for free.

YouTube contends that there is already in place a database software engine that can discern copyrighted material from non-copyrighted material and they have set aside more than $200 million for legal fees to fight Viacom's $1 billion lawsuit. This is certainly not a time for the owners of YouTube to be rejoicing in celebration of international success as this legal fight will take some time to recover from. YouTube is also facing Europe's more rigorous terrain when it comes to regulating videos in international waters as well.

This more scrutinezed look at YouTube's copyrighted material from the European government does not bode well for YouTube's future success.

Rob Mead

Article Source: http://EzineArticles.com/?expert=Rob_Mead

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