The troubles of Spicy as reported by us before are not the only worry for Google at the moment.Google is also embroiled in a legal dispute with Viacom, the US media group that owns MTV, over alleged copyright infringement.
The allegations centre on YouTube after a number of US court cases concerning film and video clips posted on the site without owner consent.
Such cases have dampened the desire of advertisers to use YouTube as an alternative to satellite and terrestrial TV. This set back in turn is welcome news to beleaguered commercial TV bosses who had feared serious loss of advertising revenue through the growth of online video and film.
Google has sought to limit the damage by way of reducing the number of video clips against which it sells advertising space.
In the meantime the economic downturn advertising revenue has slowed with revenues dropping from 63% growth last year to 42% this year for the same quarter raising questions that advertising has now reached saturation point online.