NYT Article plays well into the media and entertainment discussion from the weekend's Tech Strategy Competition:
FOR now, the biggest news in the exploding realm of online video is not much more than a news release. Still, the recent announcement from the News Corporation and NBC Universal of a new online video venture shows a big change in how traditional media companies are trying to confront their digital futures without looking like dinosaurs dodging comets.
At the same time, the companies’ tactics are a striking attempt to shift the old-fashioned way that most audiences have obtained their media into the wide-open digital maw.
Last year, Google’s acquisition of YouTube, the Internet’s most-visited video Web site, was a clear signal for media companies. Ever since, they have been scrambling to find ways to make money and to keep as much control as possible over their output.
YouTube, of course, has very little revenue right now, but its huge popularity and implied money-making potential were reflected in the $1.65 billion that Google paid for it. (And as far as proven Internet concepts go, media companies are not smitten by the economics of Apple’s iTunes, either, even though many networks including NBC and Fox, owned by the News Corporation, are selling shows on it.)
The only problem is that, for now, the two-year-old YouTube is far and away the most popular site for video online. And rival start-ups like Joost, from the guys who created Skype, are coming up fast. Clearly, the last breathless press release on the subject has yet to be written.
There's more to the article, you can read the rest here.