Google and YouTube By: Michelle McCree April 5, 2007

The Acquisition November 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???