Thursday, October 26, 2006

Gootube $$$$

The life force of the Internet, and practically all media, is advertising. Cash is what motivates the content creators; the "professionals" utilize the products, and the willingness to sell those products, of other companies to generate revenue. The companies are banking on the off chance that at least a few out of every hundred people who see an advertisement on a webpage will be curious enough to click it, resulting in a potential sale. Its an endless cycle; companies whore out their money to anyone who will slap it on their web page. The theory is sheer volume; if enough monkeys are bashing a typewriter, at least one of those monkeys is going to produce genius. That's an abstract metaphor that represents consumers (who are the monkeys) and the web content (which is the typewriters) and eventually, a sale (which is the genius!). So far, it seems that this is a successful formula. But when the costs of maintenance are so phenomenal, is it possible that even ads cant save an uber-popular website? What I'm alluding to here is Gootube. A.K.A., Google buying Youtube. The mega-purchase has perforated a sizable chunk into the Google accounts no doubt, although they can certainly afford it. 1.5 billion simolians is a lot of money, and it could be a potential risk. Sure, YouTube is one of the most popular websites on the Internet. But the nature of the video medium is that, it chews up a whole lot of bandwith. Apparently the bills over at Youtube are crazy big. This wouldn't be so bad if they could squeeze a few ads on every page. However, I would have to say a large proportion of YouTube traffic (and subsequently, used bandwidth) is from other sites embedding their videos. When thousands of other sites are embedding the videos, the only ads their are the ones for YouTube itself (not that it needed ads anyway). I think if Google wants to earn megabucks out of Youtube, they should look at a way of unobtrusively interlacing advertisements on every video.

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