NewTube: Biggest Launch of a Non-Existent Product Since The iPhone

Posted by: Jon Fine on March 22, 2007

Oh, the ways we can peel today’s news apart. For starters, I was convinced when I wrote this a few months back that none of this could even get this far, so kudos to all involved. (Boy, those negotiations must have been nuts.)

Of course, we haven’t exactly seen anything yet.

As for the ways to peel this apart: Remember that News Corp has MySpace, which has video ambitions of its own. Also remember that much of the news needs to be viewed within the lens of negotiating with Google. (It is remarkable how much in media right now needs to be viewed within the lens of negotiating with Google.) As UBS analyst Aryeh Bourkoff puts it, “there are two ways to express dissatisfaction with YouTube. One is to litigate. The other way is to create competitors.”

A competitor that is able to bundle big advertisers in before there’s even a Web site in place, that is.

I remain dubious that YouTube can be displaced, but things keep getting more interesting. I wonder if the NBC/News Corp/Yahoo/AOL/Microsoft play could get even broader, and end up looking something a free, less-walled-off version of this?

FYI: YouTube had 34 million unique visitors in February.

UPDATE: Peter Chernin on 3 PM conference call: “Ultimately we believe this is just the beginning. We hope to be the biggest video destination on the Web. We’re in discussions wth other content owners. We certainly welcome any [other content partners seeking an online video site] where they will be treated fairly and where their content will be protected.”

More from the conference call:

They don’t have a name for this yet.

Chernin: “On launch, this will be the largest advertising platform on earth.”

Chernin: “NBC and Fox are committed to making our content exclusive to this venture.”

In other words: YouTube only can play ball with these nets’ programming now if they agree to NewTube’s terms.

Two new advertisers signed on this morning after the announcement was made. Only one is willing to be named: Royal Caribbean.

Lastly, Chernin says: “there will be user generated content [on the site], but the focus here is on the premium content. We think that is the value proposition here.”

Reader Comments

Don

March 23, 2007 10:36 AM

Technically (or is the correct term, Pedantically) the midcentury World's Fairs were probably bigger launches of products that never existed or would not exist in any marketable form.

Tony Horwath

March 30, 2007 4:11 PM

Hi Bill, Herb,
cc: Elise Ackerman, Jon Fine by blog

Bill, thanks for the good article below by Jon Fine.
I like Jon Fine's writing - and in his photo he looks a little like Elvis Costello, who I also like.
It sounds like a few executive's are reading our executive summary (or at least the parts they like) and maybe our business plan. This could be cool.

Jon's comment (see below) is interesting:
A COMPLEX CROSS-COMPANY PLAY like NewTube comes with a dense thicket of issues to hack through. Networks don't own many of their TV shows, for instance, which will make divvying up those revenues an interesting negotiating experience. Another is that NewTube's sales force will primarily start out selling pre-roll ads, which run before video clips. This is a format the freer-form video-sharing sites have wisely shunned because it makes for a lousy experience.

and of course for the above problems we, Muzility, have solutions (as well as solutions for some possible ant--trust issues see Elise Ackerman's article and hot link below. Note - Tony Berman may want to talk with Annette Hurst).

See Elise Ackerman's insightful article http://www.mercurynews.com/search/ci_5502822 for some other and additional interesting comments on markets, syndication, statistics, and tech.
" Finally, some legal experts say the new venture conceivably could get dinged by antitrust regulators. "Whenever competitors join together in a business, rather than competing with one other, it could be seen as dividing up the market," said Annette Hurst, a San Francisco attorney who represented Napster's founder, Shawn Fanning. "It's harder to attack competitors acting together when it's in the context of intellectual property, but that doesn't mean it is totally out."

And on a further note; even though we have been at this for quite a while (years) The title, of Jon's article "...is just the beginning" is still quite apropos.

Talk more with you soon,

Tony
The world is all about your Internet videos, your Internet video-websites and Muzility makes them "All about You" !

Tony Horwath, CEO
www.Muzility.com to Inspire and Create !
Palo Alto, California, USA
650-799-1001 celephone mobile
831-768-8066 telephone direct
TonyHorwath@Muzility.com


----- Original Message -----
From: Bill Leikam
To: Tony Horwath ; Herb Blomquist
Sent: Friday, March 30, 2007 10:30 AM
Subject: NewTube Is Just The Beginning


Tony and Herb:

Here's more on the saga between "News Corp. and NBC Universal have nothing to show for their ambitious Web video destination site and service (not even a name, so I'll call it NewTube), aside from syndication agreements with Yahoo! (YHOO ), Microsoft's (MSFT ) MSN.com...."
http://www.businessweek.com/magazine/content/07_15/b4029032.htm

Peace,
Bill

Frank Rizza

March 31, 2007 3:40 AM

Everyone speaks of youtube.com but there alot of players in the market place today. Such as:

veoh.com
broadcaster.com
livevideo.com
musicplustv.com
heavy.com
break.com

Im sure one or all can be competing soon against youtube.com or myspace.com

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The media world continues to shapeshift as new forms arise and old assumptions erode. On this blog, Bloomberg Businessweek will provide sharp analysis and timely reports on the transformation of this constantly changing terrain.

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