Rumor: TV Networks to buy Metacafe

Filed in archive Internet TV on December 9, 2006

Metacafe, like Revver.com, is a YouTube like site with two key differences. The video quality is better but, more importantly, the site seeks only original video and shares ad dollars with the content owners responsible for attracting an audience. So, I found this email interesting:

from MediaPost
Rumors are swirling that online video site Metacafe, based in Israel, might be acquired for $300 million.

News of the possible acquisition was first reported by Israeli financial news site Globes.

The identity of the potential buyer isn't known, but the blog TechCrunch offers an intriguing theory: Several TV networks plan to band together to acquire the site, which they will then use as an online destination for their programs.

TechCrunch's Michael Arrington reports that TV networks have been mulling such a plan for several months, but haven't been able to commit to it for a variety of reasons, including concerns about revenue sharing, and enticements from Google to keep clips on YouTube. As of this morning, he pegged the odds of such a deal at 50-50.

But, frankly, it's hard to imagine how this type of deal helps TV networks distribute content online. The networks already can get their clips on the Web any time they want, by placing them on their own sites or on an array of video-sharing sites out there.

Acquiring a service like Metacafe, with the goal of creating one big repository for TV clips, would only make sense if network execs think they can also keep their clips off all other sites--YouTube, MySpace, Bolt, etc.

And, at least so far, they haven't been able to do so. The technology simply doesn't yet exist to prevent users from uploading clips of, say, "Saturday Night Live" skits. Sure, the companies are working on developing that kind of technology. But even if they do, does anyone really believe that users won't find a way around those restrictions?