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YouTube, an overnight media sensation and so far, the most
successful social media site on the Net. Founded by 3 ex Paypal
employees in Hurleys garage in mid 2005. We keep watch on
YouTube and maintain it's profile.
YouTube
- Business Category: Social Media Network
- Business Description: Free Online Video
Sharing Portal
- Started : 2005
- Location : San Bruno, CA. USA
- Founders: Steve Chen, 28; Chad Hurley,
29; Jawed Karim
- Current Owners : Google
- Last Purchase Price: $1.65 billion
Profile
Consumer Appeal
YouTube’s success was its rare combination of easy
and edgy. You can watch videos on the site without downloading
any software or even registering.
It’s content spans any but sex. Although unmoderated,
users support the No-Sex ban and flag any sightings, which
are immediately taken down by YouTube.
Anything that’s cultural, queasy, whacky, informative,
tear-jerking, weird, cool, showy or just personal to you is
on YouTube. It’s a window into our world, our people
in a way never before seen.
Commercial Potential
The market eyeballs are there, which means advertisers want
to be on YouTube as well. With $54 billion spent on TV advertising
annually, even 10% moved to video sites like YouTube will
ramp up its value far in excess of $1.65 billion.
Hazard Potential
Remember broadcast.com, the video provider Yahoo! bought
for $5.7 billion in 1999? No? Me neither. Just like broadcast.com,
YouTube for now, is still unproven. It has yet to return a
reasonable profit and is exposed to potential lawsuits from
content creators whose material shows up on the site without
permission. And you know how Americans love catch-all litigation.
What’s Next For YouTube
For YouTube to transform from a social sensation to a profitable
corporation will require:
- Negotiating the company through legal disputes
- Massive increase in staff – at least 100% more
employees
- Securing revenue earning advertising contracts with the
biggest ad and media companies in the world
- Maintaining their brand in spite of Google and going
commercial.
- Deftly manage corporate governance in a transparent world;
a task many experienced CEO’s are failing to achieve
with success.
RichMediaMix Predictions
- YouTube will morph into a commercial entity but won't
disappear
- YouTube will start paying for premium content
- Media search will spin niche media sites, challenging
YouTube to follow
- Television will lose appeal as social video sites and
bitTorrent networks take on their own global broadcasting
power
- Consumers will tolerate minimally invasive ads on sites
like YouTube; making a viable target for ad budget.
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