MySpace, MTV to Strike Deal to Cash in on Web Video Clips

By Diane Smith
15:38, November 4th 2008
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MySpace, MTV to Strike Deal to Cash in on Web Video Clips

MySpace and online advertising technology company Auditude are working on a deal with Viacom Inc's MTV Networks to make some extra cash from the video clips users post online.

The deal would be quite simple. MySpace users post video clips online and, with the help of Auditude technology, MTV will put online ads beside the clips. The system is quite simple and the companies agreed on it. Now they are working out a deal regarding the financial details.

The video clips which MTV would be able to make some money with also include TV shows on which the network has the ownership rights, such as "The Daily Show With Jon Stewart," Comedy Central's "The Colbert Report" and MTV's reality show "The Hills." It does not matter whether the people who upload the video clips on the Web have the permission to do it.

"There is a very strong, aggressive trend to user-syndicated or user-curated content," said Jeff Berman, MySpace's president of sales and marketing.

"Rather than fighting that aggressive trend, you'd rather go with it."

Berman wouldn’t give details about how much money the companies involved in this deal could make from it. He only described the situation as a “significant” opportunity.

MySpace is also in talks with Time Warner Inc's Warner Bros.

MySpace users will upload video of MTV as before and the technology provided by Auditude will be used to detect and identify the clip. MySpace, Auditude and the content copyright holders will share the revenue resulted from the ads.



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Tags: MySpace, MTV
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