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The Music Companies versus YouTube debacle continues to unravel one bit at at time. Now, Silicon Alley Insider is reporting that Warner, Universal, Sony and others are in talks to create their own Hulu-like site for music videos.

The music labels are “only” making a max of $25,000 per month off of ad revenues from YouTube. But that’s only half the story. The real money is made from a pay-per-play licensing deal.

To be making this kind of direct money off of music videos, which have only been used as a marketing tool up to this point, is a big shift in the music industry.

Universal makes tens of millions on YouTube and they expect to make even more next year. Overall, they expect to make $100 million next year from all of their agreements with various sites.

Since Hulu keeps NBC content on just two sites - Hulu and NBC.com, why would Universal want to restrict their offering to just one site?

Pulling from the world’s largest online video site means less exposure to millions of people. YouTube had 100 million unique visitors in October. Those visitors are concert-goers and merchandise-buyers.

Another factor is how YouTube is no longer just a video streaming site, but a bonafied search engine. YouTube is starting to pass Yahoo in searches conducted. On an anecdotal note, my son conducts searches via YouTube frequently. He hates reading; watching video is a much easier way for him to learn.

Bailing on YouTube would be pulling an entire, effective marketing channel. So, here’s my final warning to the music companies. The numbers speak for themselves.

This Saturday, YouTube will be hosting its first ever live streaming event. The broadcast will feature a music and variety show being held at Fort Mason Center’s Herbst Pavilion in San Francisco.

The event begins at 8pm EST and will feature Soulja Boy Tellam, Will.i.am, Tay Zonday of Chocolate Rain fame and a bunch of “talent” from the YouTube community.

Thankfully, Ask a Ninja will be there. He’s one of my favorite YouTube sensations of all time.

Most importantly, there will be dance. But will it top Justin Timberlake as Beyonce’s backup dancer on that other live variety show that airs on Saturdays last weekend? Me thinks not. (Dangit. NBC has still NOT posted that skit on Hulu.com. Really, NBC?)

Related Reading:
YouTube Rolls Out Sponsored Videos
YouTube Adds Search to Embeddable Videos
Yellowbook and YouTube Enter Content Distribution Partnership

Yahoo! Live, a live streaming video product build on Brickhouse, will stop broadcasting December 3, 2008. In a statement on the Yahoo! Live blog, the Keith Thornhill said:

Our mission here on the Brickhouse team is to quickly develop product ideas that can add value to Yahoo! as a whole. To do this effectively we constantly evaluate our early-stage products and sometimes have to make the hard decision to move on, in order to continue exploring new territory and developing new products.

I, for one, will always hold dear a Yahoo! Live memory from this past summer. My family had (finally) just gotten a Nintendo Wii and my daughter and I live broadcasted our earliest Wii Sports matches.

On the other hand, I won’t miss the creepy people who had less than the best intentions with live streaming.

For Netflix customers, it’s time to consider buying a better office chair and investing in a nicer monitor; the service that’s best known for mailing DVDs will allow many people to view an unlimited amount of video online.
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netflix opens floodgates to online streaming

If not for the Internet, you would be waiting for either 90 seconds of coverage on the 11 o’clock news, or the morning paper to find out about Led Zeppelin’s tribute to Atlantic Records late founder Ahmet Ertegun.
Led Zeppelin broke up when I was 13, at a time when music news was even more rigidly [...]

AOL’s advertising division, Platform-A, developed the video ticker ads as an alternative to conventional pre-roll spots for online video.Advertisers and networks want to balance the placement of their video marketing with the likelihood such placement won’t backfire by annoying the targeted audience. They have experimented with dropping ads before the video, after the video, and [...]

Gokul Rajaram’s name may not among those most commonly associated with Google, but as a key figure in AdSense’s development, he was a pretty important person within the company.  Emphasis on “was”; although Rajaram’s past accomplishments will continue to stand, he’s left Google.
The search giant apparently favored Rajaram with a going-away party and a [...]

Verizon Wireless has agreed to reimburse over 13,000 subscribers that had their wireless internet service disconnected after "excessively" using their "unlimited" access plans. The New York Attorney General’s office called Verizon’s marketing tactics "deceptive." The reimbursement (around $75 each) is to cover the cost of wireless access cards or cell phones bought by consumers to [...]

The Nielsen Company said today that it will triple the size of its National People Meter television ratings panel by 2011 and provide more flexibility for measuring non-traditional television viewing including online video and mobile video.

Nielsen’s NPM panel, currently consists of about 12,000 U.S. households and 35,000 people, it will increase to 37,000 homes and [...]

It was strange enough to see Nissan and Yahoo become involved with a series of live music concerts.  Now those concerts are being moved from the Web to cable TV, and they will wind up on MTV’s high-definition channel (known as MHD).

Nissan/Yahoo Live Sets Move To MTV

As we noted when “Live Sets” first began, [...]