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In less than two years YouTube has become a global media brand. Then again, a key driver has been good content – which is often owned by major media companies.
Traditionally, the knee-jerk reaction would be to sue an upstart like YouTube.
But times are changing. And, this week, Warner Music Group has decided to partner with YouTube.
In the deal Warner will get a cut of the ad revenue for video views. And over time this could mean real money. After all, YouTube gets more than 100 million video views per day.
This is not to say YouTube is without risk. Universal Music Group recently made some threatening comments about the company's use of copyrighted material.
So, to hedge its bets, YouTube is implementing sophisticated software to spot infringing content.
But the good news is that Warner realizes that – in the digital world – lawsuits are an expensive waste. Why not get a piece of the action instead?
Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.
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