Google Buy Youtube

[slick]

Not bad for 18ths months work, $1.65 billion dollars.

They tried it on with us a few months months back but what the fcuk can u buy with £3.60 nowadays.

http://news.bbc.co.uk/1/hi/business/6034577.stm

[Kiko]

Originally Posted by slick

They tried it on with us a few months months back but what the fcuk can u buy with £3.60 nowadays.

Read about them in talks the other day. It was another matter whether it happened or not.

Liek you say great bit of business for youtube and it will be interesting to see what approach Google goes with it. Their video section was never up to much imo.

[kompressaur]

gooogle probably just jumped in with their big bucks. Folks aint ready for it yet even though it seems they are. im gonna craxk on with unsigned-chart.com but im gona downgrade it a bit. basically its for anyone with a mic on their computer. They sing, we listen, we vote.

right im away to get it sorted

[kompressaur]

heh heh ive just bought a great domain. I cant tell you nothing till i get it up and running. Mick thinks its a daft idea but i think its a corker and should get us internet coverage. All the lads mags will mention it too

don't say anything Mick till i have it up and running

[Beanie]

Poor business by Google I think, although the odd billion is perhaps worth a punt for them.

YouTube isn't even making money, or is generating very little, meaning google will have to change something fundamental about the site(advertising, subscriptions, protected content etc) in order to start showing a profit. On the internet those that like to do stuff for free find it easy to switch their allegiances from their site of choice to another in the click of a button, and any big change to YT will make them pretty vulnerable to competitors IMO.

[ONEDUNME]

I agree Beanie. One of its attractions is that it's outside the main stream (although it's developed and become mainstream intself but you know what I mean) and it shows what the fuck it likes.

The only people this is a good deal for are the sellers and the lawers who are gonna be queueing up to sue the arse off Google at every opportunity, which means that they'll have to restrict the content, which means that it will lose some of its appeal.

[kompressaur]

especially sods like this
http://www.youtube.com/view_play_lis...21D71391C34F44

[deano6410]

Poor business by Google I think, although the odd billion is perhaps worth a punt for them.

YouTube isn't even making money, or is generating very little, meaning google will have to change something fundamental about the site(advertising, subscriptions, protected content etc) in order to start showing a profit.

Youtube makes the majority of its money from GOOGLE ads. Therefore, if google own Youtube then they get to cut out the middle man. Currently there are around 100 million videos per day shown on Youtube (That number is growing fast). The normal advert clickthrough rate for many web sites is between 4-8%. A site like Youtube is looking nearer to just 2%

However, even if Google earn just 10p per click, they will be making around 200 grand per day from the site. That is 1.4 million pounds per week. On top of that they will make a small fortune from companies like Warner Bros for promos for upcoming films etc.... probably at least another million pounds per week.

The ONLY major expense of Youtube is the server costs. Which must be out of this world for any company on the planet...... except..... Google. To them it is a drop in the ocean. I would guest the expenses have now halved (Perhaps even more).

So upon buying the business they have doubled profit margin and halved expenses. Not bad business if you ask me.

[kompressaur]

suppose if you look at it that way your right Deano. google want to take over everything and even Microsoft are scared. google is eating the internet.

Im gonna start my own search engine. right what you want and i'll go look for it.

[Winrew]

Nice post Deano , it all make sense now.

[Beanie]

I don't doubt all that deano, but to spend over $1bn on what is essentially just traffic(admittedly a shedload) looks very risky to me...traffic comes and goes on the net and google will have to work exceptionally hard to retain and build on YouTube's success, and all the while there will be the threat of the business going tits up(and as above, there is a far higher probability of this than with any 'bricks and mortar' company), with virtually zero assets to fall back on. And thats not even starting on the lawsuits ODM mentioned.

Anyway, the proof will be in the pudding, and it sure will be interesting.

[slick]

The nets all about Trafic Beanie in what a website is worth as we found out tonight when we topped the tenner mark.

I'm with you though as it looks a bit dodgey and i remember the way Zoot or whatever is was called went by the wayside.

Its all about advertising and just like tv the more viewers a program brings in the more a website is worth and with over 100 million viewers a day Youtube had to be worth a few bob but $1.6 billion is something else.

It sure will be interesting as to what happens to Youtube now but i cannot blame them for taking the cash and running like the clappers. not that it would ever cross our minds like.

[madaxeman]

From what I've heard,the geeks who started youtube aren't getting a penny cash,just Google shares.Not that I'd knock them back mind.

[deano6410]

I don't doubt all that deano, but to spend over $1bn on what is essentially just traffic

EVERY web site on the net is essentially just traffic. If it was traffic + bricks + staff + windows then it would be a shop and not a web site.

The cost is a drop in the ocean for Google, i see no reason why people will stop posting videos on the net, so it seems a bloody good deal from every angle to me. Time will tell though.

[ONEDUNME]

Originally Posted by deano6410

, i see no reason why people will stop posting videos on the net,

I do - Copyright.

Homemade vids of somebody's hairy arse falling off a toilet or some lame amateur magician doing card tricks can only get you so far and whereas they've been able to put up whatever they damned well please without fear of being sued (because they have had no cash to pay out with) they can no longer carry on doing that.

They are going to lose material because some companies are going to refuse to let them show their stuff. It's all up in the air at the moment but you're right deano when you say that time will show that you're wrong