Rumors are continuing to circulate that many of the major television networks (and I assume movie studios too) are looking to bring to life a YouTube competitor. The plan is to launch the service and then initiate a full frontal legal attack on video sharing sites such asYouTube, forcing them to all pull unlicensed video.

This would give the TV networks a huge advantage as they could show exclusive content on their own video sharing site, while at the same time preventing it from being shown on others. Sounds great in theory but the legal hurdle against the Google lawyers and every other video sharing site is a difficult one and shows no guarantees of ending in the TV networks favor.

Also there is the highly loyal YouTube crowd to consider. This crowd would be very reluctant to head on over to the nasty corporate site that is trying to ruin YouTube and may even boycott it.

These problems aside the venture still looks particularly unclear with Google already paying off rights owners to keep the lawsuits of YouTube for the time being. The TV networks are also having trouble deciding how to split the revenues from their possible video sharing site.

According to TechCrunch, Viacom and Disney have already dropped out of the discussions entirely, I find it particularly strange that Disney has dropped out since they are tied in with Apple, and hence iTunes, and the new iTunes video store has a lot to gain from a popular video sharing site built in its favor.

Apparently Fox and CBS are still trying to put a deal together. Oddly a few weeks ago CBS was singing the praises of YouTube saying it helped increase offline ratings when video clips were shown on the site.

If this Tv network powered video sharing site idea does go ahead then MetaCafe is a likely candidate for an acquisition in order to kick start the whole process.

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