Google and YouTube
By: Michelle McCree
April 5, 2007
The Acquisition
 November 2006
 1.65 BILLIION DOLLARS or (1.2)
 Result?
 YouTube will remain an independent subsidiary of
of Google I.e. they will continue to operate
separately
 Google Video and YouTube will continue to play
their respective strengths as well.
Why YouTube?
= Part of Google’s goal to bring the
highest quality search results possible
Google is striving towards becoming
even more comprehensive as it evolves
into a service where you can search the
world’s online video content.
What YouTube is bringing to the
table….
 …1.65 (1.2) billion dollars is a lot of money
 Potential $=“broadcast yourself”
 More than 65,000 videos are uploaded daily
 More than 100 million video streams daily
 People can now make and share their own content
 Possibility to reallocate the 67 billion dollars
that advertisers spent on TV advertisement in
this past year
Advertisement
 2 things need to happen in order for Google
Video to capitalize on the available market
 A Business model: that would convert YouTube
from fan site --> actual advertisement medium
 A huge change in the worldwide media
economy
 Essentially the line between TV and Internet TV should
disappear
Advertisement: Video Ads
Obstacles
 It is hard to figure out a revenue model
around a user-generated media
 Where exactly to put the video
 Protecting Intellectual property
1. User generated Media
 Problems
 Who makes the decision about the Video ad
 Advertisers choose Video
 Video Publishers choose advertisement
 Is it based on popularity
 Inappropriate content being associated with media clips
 Who is receiving money for the video
advertisement
 Will the “publishers” receive a cut
2. Video Ads
 Pre-Video Commercial
 Possibly: Push down 30 sec advertisements to 10
sec
 Problem: Extremely intrusive and a turn off to
users
 “Post roll” ads
 Problem: Who would stick around to watch them,
or who could prove so
2. Video ads continued…
 “Sponsored Videos”
 Offer the chance for advertisers to pay for better
placement of certain types of videos, such as..
 infomercials
 longer length commercials about a product or service
 companies or individuals who want their videos to get
better exposure
 network wanting to promote a new television serie
 Done similar in style to the sponsored listings
versus organic listings in the regular Google
search results, but with videos instead
2. Video Ads Continued…
Popularity based
 Depending on popularity of the video
advertisers could pick and choose
 The popularity of the video would void the
annoyance of an introductory Ad
 This could leave a lot of videos without
advertisement
 Ex. Advertisement only on the top 10
videos
3. Protecting Intellectual Property
People have a nasty habit of uploading
copyrighted content
 YouTube has protection
 Digital Millennium Copyright Act
 Creates a form of revenue
 Ex. CBS, Universal Music Group, and Sony
BMG are paying YouTube to purposefully
search for their copyrighted material and
remove it.
How video content can be
indexed?
 Can Meta Data entered by the publishers be
trusted? Or better yet comments from the
viewers??
 Wired: discusses the possibility of a Google
tool being used to close caption the video
content.
 What would be a good search interface for the
video?
A New YouTube?
As of right now YouTube purposefully
does have advertisements on their page.
With the implementation of
advertisement and a new media oriented
revenue model, will YouTube loose its
feel???