Just hours before Google announced a US$1.6 billion acquisition of YouTube on Monday, both companies separately revealed agreements with major music labels for offering music videos on their respective sites. The deals, especially those between YouTube and the record companies, take on new significance since the acquisition, says one leading industry analyst. That’s because without Google, YouTube would have likely faced a potentially impossible task in negotiating similar deals with all of the major content producers, said Josh Bernoff, an analyst with Forrester Research.Google and YouTube both must work with content producers to either prevent copyright content from appearing on their video websites or to pay for the right to host the content, said Bernoff. Without such deals in place, the content companies are likely to sue the website operators for copyright infringement, much like they’ve done with most of the early digital music sites.“Let’s assume for the sake of argument that 80 of the top 100 content companies make deals with YouTube. The remaining 20 are sufficient to cause YouTube to go out of existence,” Bernoff said. Even a single company like Walt Disney, for example, might have been enough to put YouTube out of business through costly litigation. However, under Google, YouTube has a better chance of avoiding such potentially crippling lawsuits. “The difference now is that Google brings both incredible technical resources and deal-making resources to this negotiation,” Bernoff said. On the technical side, the content producers are likely to trust Google’s ability to create and deploy a sturdy filtering system that could remove unauthorized content from the sites. YouTube has been working on such a solution, but it’s a smaller company and the technology still needs to be proven, he noted. In addition, Google’s wide range of offerings puts it in a strong negotiating position with content producers. “If you think of all the different assets that Google brings to a negotiation like that, it’s a whole lot easier for Google to come to a solution with Disney than a YouTube,” he said.The record company deals include separate YouTube announcements with Sony BMG Music Entertainment and Universal Music Group to show music videos from the labels on YouTube. Google also announced on Monday similar deals with Sony BMG and Warner Music Group. All the agreements include the potential for YouTube and Google Video customers to license content from the relevant music companies to include in their own video creations.Google said it expects the acquisition of YouTube will improve the user experience on the video-sharing site and help advertisers by allowing more video ads on the site. The companies stressed that YouTube will operate independently within Google in an attempt to preserve the site’s spirit and brand.-Nancy Gohring, IDG News Service (Dublin Bureau)Related Links: Google to Pick Up YouTube in $1.65B Stock Deal Google to Buy YouTube for $1.6B? Google, Sony BMG, Warner Music Team in Video DealCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature 10 most popular IT certifications for 2023 Certifications are a great way to show employers you have the right IT skills and specializations for the job. These 10 certs are the ones IT pros are most likely to pursue, according to data from Dice. By Sarah K. White May 26, 2023 8 mins Certifications Careers interview Stepping up to the challenge of a global conglomerate CIO role Dr. Amrut Urkude became CIO of Reliance Polyester after his company was acquired by Reliance Industries. He discusses challenges IT leaders face while transitioning from a small company to a large multinational enterprise, and how to overcome them. By Yashvendra Singh May 26, 2023 7 mins Digital Transformation Careers brandpost With the new financial year looming, now is a good time to review your Microsoft 365 licenses By Veronica Lew May 25, 2023 5 mins Lenovo news Alteryx works in generative AI for speedy analytics results OpenAI integration and AI wizardry for report generation are aimed at making Alteryx’s analytics products more accessible. By Jon Gold May 25, 2023 3 mins Analytics Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe