CBS (CBS) has decided to end talks on offering an extension of its deal with Google (GOOG) to allow more video clips of its show on the YouTube site, the Wall Street Journal reported.
It's an interesting decision in that the clips have reportedly increased interest in the shows being broadcast on the television; especially the David Letterman show.
"The problem with You Tube is there is no revenue yet," said Larry Gerbrandt, senior vice president and general manager of Nielsen Analytics. "How is Google going to see a return on the $1.65 billion they paid? They have yet to create a model. On the other hand, once they start to generate significant amounts of revenue, those copyright issues become more significant."
This is the second time a big media company has backed off from Google and YouTube as Viacom (VIA) recently stopped negotiations, made a deal with Joost, and had them take down over 100,000 illegal clips.
Google is reportedly in negotiations with the BBC to provide video clips from the British company.
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