I told you so. Google's acquisition of YouTube has gotten a lot of attention for its $1.65 billion pricetag. But that's not the end of the story. Chapter two of the YouTube saga will be an elaborate dance with copyright laws—and holders. Stephen Colbert's comic diatribe ("the way I see it, you owe me $700 million") is only the tip of the iceberg. There will be purges, of course, including 30,000 items deleted at the demand of the the Japan Society for Rights of Authors, Composers and Publishers. YouTube had quietly started changing its business model a month before the acquisition by signing a deal with Warner Music that will allow revenue sharing for music clips, even those, um, unofficially uploaded by fans. There's a new concept: file sharing retroactively made legal! The rapprochement may be traced back to February when Saturday Night Live aired a rap parody featuring Andy Samberg and Chris Parnell called "Lazy Sunday: Chronicles of Narnia." Reports Business Week: "NBC asked YouTube to pull the video down, and YouTube complied. However, after the clip showed up on YouTube, Saturday Night Live's ratings ballooned, says Gerry Kaufhold, an analyst with consultancy In-Stat. In the end, NBC decided to make even more programming available to the site." YouTube's graceful transition from copyright outlaw to media darling may become an influential model—but only for as long as it can ride on the magic carpet of net neutrality. That rug may get pulled from under us at any moment. Will chapter three of the YouTube story be about its death on the information superhighway?
The boundary between television and the internet blurred a little further on Monday, when Hearst-Argyle Television and YouTube announced a deal that would bring local news to the popular video-sharing service.
YouTube is planning to move further into movie rentals, enlarging a small existing operation to include more major titles.
What, you didn't know YouTube does movie rentals? The Google-owned site started renting indie films in partnership with the Sundance Film Festival in January 2010. But now the push is on to make YouTube's rental service more of a mainstream operation like Netflix or iTunes.
Creative Labs has sued Apple Computer alleging that the iPod violates a patent granted for the Creative Zen player. Patent number 6,928,433 describes itself as "a method, performed by software executing on the processor of a portable music playback device, that automatically files tracks according to hierarchical structure of categories to organize tracks in a logical order. A user interface is utilized to change the hierarchy, view track names, and select tracks for playback or other operations." To iPod fans, that is tantamount to patenting the human body. You've got two arms and two legs? Busted! The patent was filed on January 5, 2001 but not granted until August 9, 2005. The first-generation iPod made its debut on October 23, 2001, a few months after the filing. "We will pursue all manufacturers that use the same navigation system," vows Creative's CEO Sim Wong Hoo.
More information has emerged about Microsoft's forthcoming Zune music player, thanks to my colleagues at This Week In Consumer Electronics, who always have their ears to the ground on the retail scene. The company has been briefing retailers and TWICE have been prying out morsels of information about Redmond's supposed iPod-killer. Here are the details (I would rather slit my wrists than say deets):
When we last discussed Zune, plucky little Microsoft was getting ready to take on mean monolithic Apple with an iPod-really-wannabe but details were scarce. They got less scarce last week with the announcement that the 30GB player, at $249.99, would cost almost exactly the same as the new 30GB iPod video, at $249. At the risk of belaboring the obvious, the 80GB iPod video may better serve a large library at just a hundred bucks more. But the iPod doesn't let you wirelessly share tracks with another user. The DRM catch? Three plays for three days, then the play privilege expires unless you pay. Another thing you won't get in the iPod/iTunes ecosystem is an all-you-can-eat monthly subscription like the Zune Pass, $14.99/month. Like some wacky city-state, Microsoft even has its own currency—Microsoft Points—described as "a stored value system that can be redeemed at a growing number of online stores, including the Xbox Live Marketplace." A track costs 79 Microsoft Points, at 80 to the dollar. Zune accessories include home, car, and travel packs at $79-99 with various cables, adapters, and things. Among many single-packaged accessories are the Zune Premium Earphones ($39.99) which, the 'softie site assures us, "produce superior sound." Finally, if you've had your heart set on a brown player, Zune's got one, along with black and white. Actually, it doesn't look bad. For more details, see the press release. Zune's D-Day is November 14. Wish it luck. Or not. Really, it's up to you.
Microsoft's Zune goes on sale tomorrow. It may already be getting the attention of consumers, according a survey by ABI Research. Of 1725 teens and adults queried, most of those planning to buy a new music player in the next year would consider Zune. That includes 59 percent of non-iPod player owners and--shock!--58 percent of iPod owners. Only 15 percent of iPod owners said they were "not very likely" or "not at all likely" to choose Zune. "Our conclusion is that iPod users don't display the same passionate loyalty to iPods that Macintosh users have historically shown for their Apple products," says analyst Steve Wilson. The press release does not mention Microsoft sponsorship though it admits that respondents were shown a photo and description of Zune before answering. In other Zune news, Microsoft is discontinuing its MSN Music Store in favor of the new Zune Marketplace (full-sized screen shot here. And in a surprise announcement, Microsoft announced it would pay a hardware royalty of more than a buck per player to the Universal Music Group—home of U2 and Jay-Z—in addition to a software royalty for every download. Zune has attracted mixed reviews in The New York Times (a free read if you register), The Wall Street Journal and a brief hands-on assessment in Wired News.