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A Credit Suisse report this week claims YouTube will only make $240 million from advertising this year, yet will pay $256 million for content licensing, and more than $355 million in bandwidth costs.
Music Ally | Blog Archive » Songwriters gang up on Google at PRS for Music event (liveblog)
This really puts the whole music licensing model into sharp focus, although the flip side of the argument is that Google gains much more from its search advertising and can afford to give more to content creators. Either way, this could end up being a hugely significant case which defines how future licensing models on the Internet work.