MySpace, MTVN Pact to Monetize Content Posted by Users
In rececnt years, social networking sites and content sharing sites have become increasingly apart of our lives. They have been created by innovative people who often don't have solid revenue models in mind when launching their sites. MySpace and MTV Networks are looking at ways to make profitable the video clips of copyrighted material owned by MTVN that is posted by MySpace users by automatically attaching advertisements to the clips.
MySpace and MTV Networks have formed a partnership designed to help both companies monetize MTV’s copyrighted content that users post to MySpace. The scheme uses ad insertion technology created by the startup firm Auditude.
Through the new arrangement, when users post clips of series like MTV’s Punk’d or Comedy Central’s The Daily Show to MySpace, Auditude’s technology will automatically recognize that content as having been produced by MTVN, allowing MySpace to place ads alongside the clips. MySpace can also opt to have viewers automatically alerted about the source of the content they are streaming via a new “Attribution Overlay” placement, which can be used to direct those users to purchase individual episodes of those series or related merchandise.
MySpace and MTV’s decision to attempt to cash in on Web users’ continued tendency to post copyrighted video content online is a departure from recent years, when major media companies have frequently clashed with video sites over pirated clips, often demanding they be taken down. The move mirrors a similar tactic being tested by YouTube and partners such as CBS and Universal Music -- though interestingly not Viacom -- which remains entangled in $1 billion lawsuit with the Google-owned company.
Executives claim that Auditude’s technology can identify more than 250 million videos. “With Auditude’s solution, we can continue to give users the freedom to take our content wherever they go online, while ensuring that we can monetize it as well," said Mika Salmi, president of global digital media, MTV Networks.
From the sound of it, MySpace may look to employ Auditude’s technology with multiple content partners. “Auditude is opening the floodgates for users to program video on MySpace and ensure copyright holders get paid,” said Jeff Berman, MySpace president of marketing and sales. “In one fell swoop, Auditude and its partners are empowering consumers and building a better business model.”
MySpace, MTVN Pact to Monetize Content