As per my own thoughts a few days ago regarding the litigious left jab of Universal, it seems like Mr. Cuban agrees: the basis for YouTube’s success has been rampant unchecked piracy (but he also adds that the secret recipe may have also involved low to no-cost bandwidth).

One wonders if the success of YouTube represents major studios attempt at having their cake and eating it too.

What do I mean?

Well, now that YouTube has its exponential growth, probably only second to MySpace, and grumblings about its cash-cow valuations and potential, we’re only now seeing everyone coming out of the woodwork (yes, like worms) with their own solutions.

Amazon’s Unboxed. iTunes releasing Movie Downloads. NBBC.

But previously, it seemed like music labels, television studios and movie studios were allowing YouTube a free ride (to a greater or lesser degree): let their material circulate on YouTube. SHHHhhhhhh. its a copyright violation … but its also getting free publicity.

Now that YouTube’s gotten large enough, well, its time to wheel out the lawyers — or that’s what Universal has seemed to have done.

Like I’ve said: Its probably a gambit to earn a piece of the YouTube pie.

Well, as opposed to Universal, it seems like Warner has already gone the diplomacy route and beaten Universal to the punch on this one. Late yesterday, there’s an agreement in place for YouTube to share in advertising revenues placed on Warner’s videos that it will release. It will still ‘try’ and clamp down on user-uploaded copyright-violated material though.

TechCrunch thinks that its sort of like an on-line DRM — and they may be right.

The other consideration is that while this no doubt markes the first time YouTube has actually partnered with a major studio — one wonders what sort of success this will have. I mean, who watches music videos any more?

After all, isn’t the allure of YouTube not ONLY watching television and movie clips — but to watch some silly comedian to copyrighted music? (Yes, that’s right: 32 million views in just a few months). In that case Warner’s deal means bupkiss.
Anyway, it will be fascinating to see how this all plays out.

Mr. Cuban seems to think that Universal’s first swing might be the beginnings of serious litigious battles for YouTube — and might spend the end of this mighty web2.0 giant.

Will YouTube get carved up by major studios like 19th century China? Will it get bought out entirely? Will Universal and YouTube (and others, of course) get embroiled in a litigous version of a Battle Royale?

Or will YouTube devolve into insignificance as more and more studios release their own material?
I’m not really sure. But as long as their’s an avenue for sophomoric humour, there’ll probably always be some place for YouTube.

Time, as they say, will tell. :)