Because you are wrong in several of your assumptions.
It wrong to you assume that YouTube "spends $0" Dollars and, btw, they never "...produce the show...," they
"Host" these videos.They Host these videos on lots of Computer servers that they had to install and maintain or pay people to maintain, and they had to buy huge amounts of Internet Bandwidth for all the increased traffic these additional viewers created on their site, so the cost to YouTube (and the money saved by Viacom) was Definitely NOT $0.00 Dollars, come on, that has to be obvious to anybody.
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http://www.networkworld.com/community/?q=node/8368>
Thu, 08/31/2006 - 7:04am
Interested in what makes YouTube tick?
Well, YouTube won't tell you, but enterprising people, such as Lee Gomes of The Wall Street Journal, scraped the site to find out info the company normally won't share.
Get this: "YouTube videos take up an estimated 45 terabytes of storage - about 5,000 home computers' worth - and require several million dollars' worth of bandwidth a month to transmit."And you think you have storage management issues?
All that Storage space and Bandwidth that Viacom didn't have to buy and hundreds of people they didn't have to hire and employ and pay Health Insurance costs for, which also cost a lot of money. And that cost is also for a video service (video clips that could be embedding the users MySpace or webpage) that until just recently, Viacom didn't even offer when most of those video were uploaded to YouTube.
Viacom did offer a very inferior product in the "Motherload" player in 2006, which NEVER worked for me (and a lot of other people too). I could never get it to work at the Comedy Central website, let alone as an embedded player. It only recently started working now that Adobe has released their "Flash Player 9" plug-in.
And on top of all that, a LOT of the old (pre-2003) Daily Show videos that people uploaded to YouTube were NOT even available at any of the Viacom websites (or anywhere on the web) and you certainly couldn't buy them in any store on DVD. You might be able to find an old used copy of the shows from the year 2000 election campaign and Election Fiasco on eBay if you were lucky, but most of the those old shows, which lots of the new Fans (from all around the World, I should add) that YouTube creating for these shows, were shows that Fans wanted to see, and would probably pay to see, if they were available.
So here's another value that YouTube added to these old shows that were just sitting in the Viacom Archives.
Free Market Research! If Viacom had been smart about all this, they could have seen what old shows the Fans were looking for and watching (and Rating, btw on a 1 to 5 star rating system) and created DVDs of just those shows. I'm sure we both know that sometimes The Daily Show produces a few shows that are stinkers (like this week for example), so it's too expensive to just put out DVD's of ALL of the last 10 years of The Daily Show on DVD, some probably wouldn't sell more than 10,000 copies, so not worth the trouble for a Mega-Corp like Viacom.
I'm not even going to try to calculate the value of the Thousands of new fans YouTube videos created per month, but add it all up and this was a sweet deal for Viacom.
So what do they have now? Lots of very pissed of fans and viewers which they are going to have to spend Millions of Dollars to get back and make happy again, that is if they even still care. I don't think they do.
Plus, I bet I find a new site like this popping up every month in a different part of the world. What Viacom did was very similar to what the dorks in the White House did when they went into Afghanistan and "decentralized" a certain terrorist group. Now all these computer wiz kids are spread out, all over the world, and they have a model to follow to create a dozens of New YouTube type sites, and all out of reach of U.S. Copyright Laws.
What Viacom did wasn't bad, it was just Stupid.