Jukin makes its money licensing videos to others. But it also pulls in cash by scouring YouTube and other sites for people who have reposted its videos. Using tools like the YouTube Content ID system—an automated system for identifying pirated copies on the site, including modified videos—workers identify copies of videos Jukin has licensed and issue takedown notices. Any ad revenue made by these copies is then redirected to Jukin.
It’s a free-market. Jukin could be the next Comcast or NBC. The Internet is making it possible for companies like this to exist…a concept that is very similar to America’s Funniest Videos in the past but more importantly, The Internet is the next frontier of replacing cable and diverting the $120 a month the average American household spends on cable today to Internet videos. Keep an eye on these guys. I already hate them.
Every time I watch YouTube videos in RSS, 1 out of 10 won’t play because I have to watch the video on YouTube.com due to a restriction by Jukin Media which disallows embeds of their videos so they can garbage them up with trashy ads. Want to get rid of Ads? Join YouTube Red for $10 a month. The slow decay of cable but ultra-monetization of streaming video is here.