Reuters UK just ran an interesting story that entitled, “YouTube-CBS deal unravels: WSJ.” This article reported a multi-year deal between YouTube and CBS that would let YouTube users watch clips from CBS shows such as “The Late Show with David Letterman” has unraveled. However, the talks could be revived at some later date. This news comes just after Joost strikes a deal with Viacom. This is another major setback for YouTube as two weeks ago, Viacom ordered YouTube to remove 100,000 clips of its television shows, after the two companies failed to reach a licensing deal despite months of negotiations.

It seems that YouTube has experienced some difficulties in closing the deals with some of the big TV broadcasting players. I always wonder does YouTube only close a deal that produce value to its stakeholders. But with the huge audience YouTube had now and most of them are young people that represented the hottest demographic at this moment, I still believe YouTube got the bargaining power. With the market capitalization of Google, YouTube still has a lot more services that could offered to its users.