LATEST ADDITIONS

Google-owned YouTube flunked its first test as a copyright-compliant media company. The Financial Times reported a month ago that a "content identification system" promised for the end of 2006 has failed to materialize. GooTube had been promising the tool to large copyright owners as a first step in converting its often dubious legal status into something sustainable. Instead, Google will be forced to go on making piecemeal deals with whoever threatens to sue. Is GooTube intentionally dragging its feet to prevent a catastrophic exodus from its user base? With hungry and well-funded players like AOL Video charging into the arena, GooTube may be playing for time. For my own part, I spend an impressive chunk of downtime with my armchair pulled up in front of the PC, watching amazing concert videos on YouTube that aren't available on DVD. The future belongs to whoever can deliver that experience while staying on the right side of the law, hitting the sweet spot between legality and comprehensiveness.

Independent music labels are banding together to increase their marketing power in the dawning download era. Say hello to Merlin, a licensing authority that bills itself as a "virtual fifth major" label. It will serve as a single point of contact for download services like iTunes and Rhapsody, giving indies a better shot at getting into the most heavily trafficked online distribution channels. Under a deal with SNOCAP, Shawn Fanning's post-Napster venture, Merlin will also enable artists to sell no-DRM MP3s on MySpace or through their own virtual stores. Members include numerous indies from the United States, Latin America, United Kingdom, Europe, and the far east. Look out Universal, Sony BMG, EMI, and Warner. You've got some real competition now.