First of all, I your script would not even run in PHP, you would get and syntax error, so I do not really see how you could have tested your script.
Proper way to fix your current script as it is, would be something like:
$videonova_content = "
var InitialScriptApi = \"<script src ='http://www.youtube.com/player_api'></script>\";
var youtubeTitle = \"Wordpress\";
var youtubeSource = \"fH6B4S9ENY4\";
var youtubeControl = \"1\";
var youtubeAutoplay = \"0\";
var youtubeDisplay = 7;
var youtubeForcegrab = '0';
";
file_put_contents($file, $videonova_content);
For that, you could read more at http://www.php.net/manual/en/language.types.string.php
However, better way would be to use HEREDOC or NOWDOC, since their purpose is exactly what you need. So, in your case, it would be something like this:
$videonova_content = <<<SCRIPT
var InitialScriptApi = "<script src ='http://www.youtube.com/player_api'></script>";
var youtubeTitle = "Wordpress";
var youtubeSource = "fH6B4S9ENY4";
var youtubeControl = "1";
var youtubeAutoplay = "0";
var youtubeDisplay = 7;
var youtubeForcegrab = '0';
SCRIPT;
file_put_contents($file, $videonova_content);
You can read more about HEREDOC at http://www.php.net/manual/en/language.types.string.php#language.types.string.syntax.heredoc