GoogleTube Digs Deeper Into the Wallet
Posted in Industry on November 3rd, 2006
Google continues its scramble to make YouTube legal through licensing deals with record labels and film studios. Licensing has already been negotiated with Warner Music, universal Music and Sony BMG. A combination of carrots are being offered, including up front and ongoing payments, Google stock, and ad revenue sharing.
The cost will likely hit hundreds of millions of dollars a year. That's a lot of money. On the other hand it's a small portion of the $1.6 billion shelled out to buy YouTube. Google certainly expected such costs and has the money to pay for it.
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