Technology

YouTube (GOOG) Licenses Content No One Wants

Google’s (GOOG) YouTube has cut a deal with Digital Music Group (DMGI) to license 4,000 hours of video content from the golden age of TV. DMGI will receive revenue from the advertising that runs on pages showing the content.

YouTube has not been able to license video content from major studios or TV networks, but the move is a poor alternative. The arrangement will allow YouTube viewers to watch classic shows like “I Spy” and “Gumby”.

AOL launched a similar service several months ago. “In2TV” does not seem to have created much buzz or audience for the web portal which has not said anything about the traffic for the service.

The core issue remains that many consumers would rather watch pirated premium content from file sharing services and from sites like YouTube and News Corp (NWS) MySpace than oldies content which is available legally. This vexes both the content owners and the video sites, but their is a reason “Gumby” is not longer on TV. No one wants to watch it.

Douglas A. McIntyre can be reached at douglasamcintyre@247wallst.com. He does not own securities in companies that he writes about.

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