MySpace came up with a smart way to deal with video clips that contain copyrighted content. Instead of deleting these files, MySpace will use Auditude's online video ad technology to add advertising to pirated clips of MySpace's partners:
Now MySpace will take a different approach with videos produced by partners it makes in its new ad deal.
Under this first partnership, MySpace users will be allowed to upload videos of MTV Networks shows. Technology from Auditude will detect and identify the clip, and overlay an ad on it. Revenue generated from the ads will be shared by MySpace, Auditude and the content copyright holders.
Auditude's chief executive, Adam Cahan, said the system will tag videos with a so-called "attribution overlay" — a semitransparent bar across the bottom of a video that give viewers information like the episode's original air date and a link to buy the episode.
One of these will appear for about 10 to 15 seconds near the start of a video, and be followed by an ad.
The overlays and ads are expected to start showing up on MySpace in the coming weeks, and MySpace and Auditude predicted that new ad formats and ad partners will soon follow.