20 million reasons why YouTube was worth it

Stan Beer
Sunday, 15 October 2006 18:28

Opinion and Analysis

Saying that people will grow tired posting and searching for interesting videos on YouTube is like saying hard-core video gamers will get sick of playing games.

YouTube is a new form of entertainment that fits particularly well with the lifestyle of young people of today. It's fast, it's immediate,  and, unlike TV, it's interactive. That's why it has built an audience of millions in the space of less than a year.

TV networks and production companies recognize the potential of YouTube as a medium to spruke their shows which is why they're starting to sign contracts with the fledgling site.

The illicit postings of 10 minute Simpsons episodes and variety show segments may disappear off the YuTube site, as some already have. Then again, maybe the copyright holders will explore the possible new avenues of advertising revenue sharing from content that could not be otherwise monetised.

Now that Google is set to take charge, there is no doubt that efforts will be made to bring the site into compliance with copyright laws. 
However, no doubt there will be some stubborn hold-outs who insist that Google remove all their content from YouTube and attempt to sue for compensation. Google will probably comply with their requests and settle.

However, sooner or later the hold-outs will come to realize that they can make more money through cooperation than confrontation. Trying to pretend that YouTube is just a passing fad in 2006 is like trying to pretend the web was just a passing fad back in 1994. Google is prepared to bet US$1.65 billion of its stock on that and, to Messrs Brin, Page, Schmidt and Company, it seems like a fair bet.