Finally, YouTube's revenue model makes sense. Make a product, gain massive viewership and then sell out to a big fish. What Google has acknowledged with this purchase is that not everything they build will be successful. Google Video was not really going places and YouTube's acquisition will give it the boost it needs to compete in the videosphere. Now what remains to be seen is how google will make money of this site. Will there be premium content? Paid subscriptions? Or will the free model apply and advertisers bear the brunt? Only over the next few months will this picture get any clearer. One good thing though, there is no way Etisalat will block this now since Google gives the site a lot of credibility!
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Yousef November 2, 2006 at 06:30 pm
Have a look at this article - looks like Google has grown up, and put the "Do No Evil" mantra to the side.. Increasingly, Google will have to work with ruthlessly business-focused organizations (like record companies), and will have to play by their dirty rules. You can either play with them, or get punished the way Bolt and Grouper. This article give some interesting background on why.
A chilling vision of things to come.
http://www.blogmaverick.com/2006/10/30/some-intimate-details-on-the-google-youtube-deal/