As YouTube Mulls Changes to Kids’ Content, Rival Services See Opportunity

Earlier this summer, the Federal Trade Commission began holding private talks with YouTube officials, part of a burgeoning investigation. The video service stands accused of breaking laws overseeing kids’ web habits, placing a massive library of media and accompanying revenue in jeopardy. Neither YouTube nor the regulators have discussed the talks publicly.

Yet despite the secrecy, a small British marketing firm started emailing some marquee YouTube advertisers about the developments. Reports indicated that the FTC would hit YouTube with a record fine and force its operations to change -- something, the emails noted, that would "be of interest" to YouTube's sponsors. "Regardless of what size the fine actually is, it represents a shift in the world for children's digital privacy," read the message. "Look forward to seeing you soon.”