MySpace Finds a Way to Monetize Uploaded Videos

If YouTube has been trying but failed to monetize its vast collection of user-uploaded video content, MySpace seemed to have found a work-around with it. Through a partnership with MTV Networks and video ad company Auditude, the no. 1 social networking site is rolling out a new program that would allow insertion of advertising units to audience-uploaded video contents coming from MTV and Comedy Central.

For awhile, the video advertising program may seemed to be a legit way of tapping on the advertising opportunities from those uploaded video content. But one can’t help but ignore the fact that some of those video content were not obtain with permission from MTV Network.

To ensure that ads are served on all video contents uploaded and downloaded by users, part of Auditude’s technology will be to implement the “Attribution Overlay” which will automatically identify content informing viewers about details of shows being viewed online. This attribution mechanism will also enable video content owners to integrate more information about their video contents as well as give viewers additional relevant content and commercial links.

MySpace’s stand on implementing such video advertising scheme is that it wants to ensure that video content owners are paid for their copyrighted materials. And its solution is the said business model for enabling video advertising.

As for MTV Networks, it might seem tantamount to allowing users to record their video content for as long as they are uploaded in MySpace Video channel, which will render it open for serving video advertising. It’s a clever plan really.