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YouTube and CBS deal falls apart

Feb 26, 2007 8:00 AM

             

A deal between Google and CBS that would let YouTube users watch clips from CBS shows has apparently fallen apart, the Wall Street Journal reported last week.

The deal would have allowed YouTube to feature CBS segments, including comedy sketches from "The Late Show with David Letterman."

Details of what went wrong were not revealed, but one unresolved issue involved the length of the contract, the Journal reported. The newspaper said an agreement could be revived later, but in the meantime, the two companies might work together on a more modest scale.

In the meantime, Viacom said that it has reached a deal with the Silicon Valley startup Joost to distribute video online. Only two weeks ago, Viacom demanded that YouTube remove more than 100,000 clips of its programming.

Under the new deal, Viacom would receive a share of advertising revenue, the New York Times reported. Neither company disclosed the terms of their agreement, but media experts told the newspaper that a 65/35 split in Viacom's favor would be reasonable.

Viacom's programs on Joost will have commercial breaks, but the number of commercials in each episode will be fewer than on regular network television, the report said.

The Joost deal, the Times said, provides a level of control for Viacom that it lacked with YouTube. Joost, available to consumers this summer, will not allow users to upload any of their own content.

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