28 July, 2007

Any Ideas on YouTube Business Model?

Internet was severely lacking in availability of entertainment media . Though there are many permanent solutions to this problem, nothing was happening in real world. Media moguls lack enthusiasm to broadcast media over Internet. IPTV is also yet to take its full form.  YouTube (now become synonym for streaming media in Internet) jumped in to fill this vacuum. They made a Web2.0 user oriented media content generation/sharing website.  They made lot of sounds, brought more users to use their service and then sold it to big company for a high price. I don't think so they had a valid business model when they started this company. Now Google has to find some valid business model which can get them steady revenue from this business.

The history of YouTube is rumored like this: YouTube owners were working with PayPal and E-Bay. They wanted to create a website where E-Bay users can upload videos of their products while selling in E-Bay. Started like that, YouTube attracted lot more users and become a legend now. But I believe copyright issues are major legal hurdle for them to cross.

Original discussion in LinkedIn is here

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2 comments:

Unknown said...

Did you see the YouTube-CNN Democratic Debate yesterday? That was a novel way to popularize the ever-popular website even more

Anonymous said...

Long time after here. Hmm when YouTube came in - I too thought of their revenue model - how they cud sustain - the idea is very simple - just another Flickr for Videos - but the content here is bandwidth intensive - also the cost of the storages. Shud have been a bold move initially. However they didn't improve their offerings like Flickr did. May be Google picked it - becos it had potential in troubling GoogleVideo interms of integrating advts & monetising it.

But now I cudn't imagine a world without YouTube. :)