I think that yes, there are more users of online video than ever, I just wonder how many of those people though are really interested in user generated content, on a mass adoption level. I mean let's face it, if Google can't figure out a way to make money off YouTube, then all the VC money with these other companies are going to dry up. It will happen. I think most of the people who are online watching video's want to see professional content....I hope I am wrong, but I fear that I'm not....
Heath http://batmangeek.com http://heathparks.com --- In videoblogging@yahoogroups.com, "Roxanne Darling" <[EMAIL PROTECTED]> wrote: > > Fascinating Heath - thank you for posting it. It may be one of the > harbingers of the bursting bubble of internet video. > The main thing I see different between this bubble and the first bubble, is > that back then, it was the creators who got the investors all excited about > their ideas. Now, it is the users who are driving demand. There still is > an absence of many sustainable finance models, but to me there is a huge > difference between a few geeks with "cool" ideas and millions of users > demanding their daily fix of video. Think of the research value the > political campaigns are getting from being to search all the old stuff > (embarrassing speeches) that are steadily being posted online. > > Aloha, > > Rox > > > On Mon, Jun 16, 2008 at 7:17 AM, Patrick Delongchamp <[EMAIL PROTECTED]> > wrote: > > > Interesting indeed. > > > > I couldn't believe how badly they botched Google Video. They never > > should have had to buy Youtube in the first place. > > > > I'm surprised though that Youtube isn't bringing in much money. > > > > > > On Mon, Jun 16, 2008 at 11:32 AM, Heath <[EMAIL PROTECTED]<heathparks%40msn.com>> > > wrote: > > > Very instering article on cnet today > > > > > > http://news.cnet.com/8301-13506_3-9968220-17.html?tag=cnetfd.mt > > > > > > The big points are that Google overpaid for Youtube, (who didn't know > > > that?) But the idea that they could actually dump it, because they > > > can't figure out a way to make money off user generated video...I > > > think that is a real possibility. And I fear what that would mean > > > for all of the other video hosting sites if it happens. > > > > > > Read below.. > > > > > > Do you remember the good ol' days of YouTube? Back when a private > > > company owned it and you could post and view whatever you wanted up > > > there and no one would say a word because, well, it was practically > > > bankrupt and copyright owners knew they wouldn't get anything out of > > > a lawsuit? Those were the days, weren't they? > > > > > > Now, after a $1.65 billion buyout by Google, YouTube is not only a > > > veritable junkyard for all the crap we didn't watch a couple years > > > ago, but a bloated mess that costs too much to operate, has a huge > > > lawyer target on it, and barely incurs revenue. > > > > > > And to make matters worse, Eric Schmidt, the CEO of Google, has no > > > idea what to do about it. > > > > > > Speaking to The New Yorker, Schmidt said that it "seemed obvious" > > > that Google should be able to generate "significant amounts of money" > > > from YouTube, but so far, it has no idea what to do. > > > > > > "The goal for YouTube is to build a tremendous community....In the > > > case of YouTube we might be wrong," he said. "We have enough leverage > > > that we have the leverage of time. We can invest for scale and not > > > have to make money right now, he said. Hopefully our system and > > > judgment is good enough if something is not going to pay out, we can > > > change it." > > > > > > But is changing it really the best idea? Since Google acquired > > > YouTube, the company has tried desperately to make something, > > > anything, from its $1.65 billion investment, but so far, it has > > > failed miserably. Of course, it thinks that 'pre- and post-roll' > > > advertisements may work, but the company isn't too sure. > > > > > > And therein lies the rub. If Google is unsure of how it can turn a > > > profit on YouTube and it still has no idea if it will be able to get > > > a return on its investment, why shouldn't it cut its losses and do > > > something drastically different? > > > > > > Now I know that you're probably thinking that I've lost it and my > > > editor overlords will finally put me out to pasture, but think about > > > it for a minute: why should a company that overpaid for a service > > > continue to dump significant amounts of cash into it (not to mention > > > spend millions on copyright lawsuits) if it has no chance of creating > > > a valuable revenue stream? > > > > > > Obviously Schmidt is doing all he can to allay shareholder fears over > > > the YouTube debacle, but the very fact that he said anything about it > > > is telling. And to make matters worse, Google's ad revenue on YouTube > > > is so low, it's not even material to the financial statements. In > > > other words, if Google is making anything with YouTube, it doesn't > > > even matter. > > > > > > Let's face it -- the YouTube acquisition was a major blunder and > > > regardless of how successful the company is in other areas, there's > > > no reason to suggest advertisers are willing and ready to place ads > > > on videos of 18-year olds shooting milk out their nose or 80- year old > > > men mooning a parade. > > > > > > As far as I can tell, much of the online advertising money is going > > > to sites like Hulu where the content is controlled, the shows are > > > regulated, and the demographics of the audience are easily obtained. > > > > > > How does YouTube and its content compare? The audience is huge, but > > > it's filled with a diverse set of people who generally view a select > > > few of the more popular videos; the videos are barely regulated; and > > > the content isn't controlled in the least. Why should any advertiser > > > want to send cash to a service like that? > > > > > > Now I understand that Google wants to be a major part of the boom in > > > online video advertising and I can't blame the company for it. But > > > doesn't it understand the average company that's trying to make > > > people want a given product? It's as if Google believes that sheer > > > popularity is the only factor that advertisers use before they start > > > throwing cash around. > > > > > > But what about perception or target audience? Did Google forget about > > > hitting the right market segment or putting ads in the right place at > > > the right time? > > > > > > Now, I should note that this doesn't mean that YouTube won't find > > > itself advertisers. Certainly there are companies that would be more > > > than happy to spend money on YouTube, but what kind exactly? Will > > > YouTube become the dump of advertising where strip clubs and brothels > > > will advertise on sexually-oriented videos and unknown politicians > > > will sell themselves on left- or right-leaning clips? I certainly > > > don't see Johnson and Johnson sending ad dollars to YouTube anytime > > > soon. > > > > > > Lost amid the shuffle, though, is the question of ad dollars itself. > > > How does Google monetize YouTube on videos that you create? Sure, it > > > figured out the online business, but video is a totally different > > > game entirely and without creative control over the content, ads may > > > be found on videos that could leave a bad taste in Google's mouth and > > > yours. > > > > > > Beyond that, YouTube costs Google millions each month and I'm just > > > not sure how long the company really wants to maintain that loss > > > until it follows a new course. > > > > > > Killing YouTube would obviously be the last resort and I think there > > > are a few options Google has before it's forced to pull the plug. But > > > if it can't find a way to regulate some of the content that will host > > > ads and it doesn't attract high-paying advertisers, it's sitting on a > > > billion dollar mistake that keeps draining cash from its coffers with > > > each passing day. > > > > > > YouTube was the greatest blunder Goolge has ever committed and it > > > better act quickly if it wants to turn it around. But if it can't > > > right the ship over the next few years and advertisers start spending > > > more cash elsewhere, YouTube will be nothing but a repository for > > > people to upload crappy videos that have no commercial viability. And > > > for Google, that's unacceptable. > > > > > > Google is trying to run a business that is responsible to > > > shareholders. And while it may have the cash to keep one of the > > > world's most popular sites running now, popularity of a website, in > > > and of itself, should not justify its operation. If the company is > > > losing millions each quarter, I simply don't see why it should keep > > > it up. > > > > > > It may sound ludicrous to shut down such a popular site, but we're > > > entering a new generation of entertainment in the online space and > > > pageviews don't always mean success any longer. Especially if a > > > company is spending millions just trying to keep a website alive. > > > > > > I would love to see YouTube survive, but business is business, and if > > > Google can't turn things around, I simply don't see any other option > > > for Schmidt and company. > > > > > > Heath > > > http://batmangeek.com > > > http://heathparks.com > > > > > > > > > > > > > > > > -- > Roxanne Darling > "o ke kai" means "of the sea" in hawaiian > Join us at the reef! Mermaid videos, geeks talking, and lots more > http://reef.beachwalks.tv > 808-384-5554 > Video --> http://www.beachwalks.tv > Company -- > http://www.barefeetstudios.com > Twitter--> http://www.twitter.com/roxannedarling > > > [Non-text portions of this message have been removed] >
