Google And YouTube Continue to Struggle With Details
Submitted by atang1 on Mon, 03/05/2007 - 07:10.
Google And YouTube Continue to Struggle With Details - An SFGate article looks at the still rocky road that Google and YouTube are traveling as they try to iron out after-merger details. Hanging in the air are things like the Viacom takedown request, competition from Joost, and deal-making with organizations like the NBA and BBC. They're also concerned about little things like, you know, making money. From the article: "Tensions [with IP holders] haven't reached lawsuit status -- yet. Such a fight could be long and costly, but with Google's backing, YouTube could afford it. And that may be why media companies have held back so far, [IP lawyer Lee ] Bromberg and others said. Google and YouTube have something to gain from deal-making, too. For the company to make money from advertising -- and the potential is huge, with an estimated $70 billion to $80 billion spent in television advertising -- Google and YouTube need the premium videos. Because viewers are more likely to watch these clips than myriad user-generated ones, advertisers are willing to pay more for them. "
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What is Google, but a business case history study ?
Google was invested by a Silicon valley venture capital firm that owned Yahoo. Yahoo also invested in Google, a search engine startup that replaced Yahoo search engine.
Google had 270 staff just updating search by data compression technology. Its character recognition in a picture of words; rather than ASCII keyword search for better speed of response. The stock was worth $180.
Then it concentrated on advertising revenue that Google search engine websites bring in, and it has a potential of $650/share, based on potential earnings per share of revenue and cash profit.
After Youtube was acquired, the potential of local TV 30 minute advertising at $8,000 per half hour was discovered. That potential was established by other website pioneers. Google was upgraded by atang1 at Tuxmachines.org to be a $1000 stock.
The business plan is working with YouTube users, to control media input. Google needs a larger than 270 staff to control revenue and local rates. The user content control will need legal background for their employees. Local advertising also means distributed data network, which Sunw might help them.
I see it as a business challenge that they have to accomplish by building a different organization from search engine type in the past. Local advertising by the half hour may appear in one small frame or several, on the youTube user webpage.