It seems that the major broadcast networks idea to create a rival to the popular video-sharing site YouTube could be in jeopardy. As reported earlier in the week NBC Universal, Fox, CBS and Viacom were all in discussions about creating a video site that could compete with YouTube. That all could change.
Viacom has reportedly abandoned negotiations sources close to the situation are saying. No official announcement has been made. The speculation is that they would be in direct competition with the other parties involved in the deal and that could be one of the reasons for walking away.
Critics of the proposed deal have been skeptical since the beginning. There have been doubts about the major media companies having the ability to reach an agreement and even if they could what it would mean for antitrust laws.
It is not known if the remaining parties involved will continue trying to create a site that would directly rival YouTube or if Viacom’s departure signals what is to come. Some believe it was a bad idea from the start.
Gary Bourgeault writes,” It would have been better for the companies not to have even started this, than to have started it and look like they’re cutting and running. They should have followed Disney’s example and just embraced and faced the new realities, rather than continually try to fight and go around them.”
Pete Cashmore sums up the situation this way. “Core users are hardly likely to switch to a site which exists solely to extract a bigger cut of the ad revenue for the media companies. This one has ‘bad idea’ written all over it.”
For now it seems doubtful that the remaining players will be able to come to a consensus and create a site that could dethrone the mighty YouTube.
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Mike is a staff writer for Murdok. Visit Murdok for the latest ebusiness news.
