News: Michael Arrington of the Tech Crunch blog has a great post on the market reaction to VideoEgg’s suggestion that YouTube has ripped off VideoEgg’s internal ad technology (for which VE has sought patents). Apparently, a VideoEgg exec has stated (maybe that’s too strong a word?) on the Tech Crunch blog that VE has no plans of stopping others from using internal ad technology with its patents if they are granted.
Analysis: If that’s the case, then YouTube has nothing to worry about in deploying its new internal overlay ad system (unless VE later changes its mind). I now stand by my original take: this new ad system is how YouTube will make billions.
