Giants Can't Beat YouTube

Media companies shooting themselves in the foot by trying to compete with Google's(GOOG) YouTube could be better off partnering with the video-sharing service instead.

Despite all the hype about big media's response to YouTube, the venture launched last week aimed at creating an online video site included a grand total of two media companies: News Corp.(NWS) and General Electric's(GE) NBC Universal.

That there are scant few media participants -- tech companies outnumber their media counterparts in the consortium -- means that other media players may be mulling moves to go it alone. But a scenario in which each company put up a Web site featuring only its own content would cause a headache for viewers.

That's because some of the biggest draws to online videos often have many media companies staking ownership claims, something sure to confuse consumers.

Take comedian Ricky Gervais, for whom only a handful of video clips can tally up to 1 million views on YouTube. The rights to Gervais' British comedy series The Office is owned by the BBC. His follow-up comedy, Extras, is owned by HBO, which is a division of Time Warner(TWX).

The American version of The Office, meanwhile, is owned by NBC. The rights to his popular standup routine are owned by Gervais himself. And a popular clip of the comedian appearing on The Late Show with David Letterman would be owned by CBS(CBS).

Then there are fans of Sacha Baron Cohen, who gained fame playing roles such as Ali G and Borat. TV show Ali G started out on the BBC but was subsequently aired on HBO. The movie Borat was produced by News Corp.'s 20th Century Fox. Cohen's upcoming film will be produced by GE's Universal Pictures.