POSTED IN INTERNET...

May 19, 2006

Youtube and the mystery of how to make a buck

We all use Youtube (which seemingly came out of nowhere) to fire off short videos, trailers and the like to each other on a daily basis. But how can this upstart service, currently pumping out millions of streams, make a buck? Engadget is on the case.

2 comment(s) so far (Post your own)

1

On May 19, 2006 8:09 AM, Ken Gracey said:

Venture capitalists my friend. Many of these new fangled Web 2.0 services are start-ups that attempt to reach a crtical mass on the web with users like yourself. Once this happens they sell out to the highest bidder and a few people - the founder, VC and employees - make big bucks. Flickr is case and point. Yahoo bought this Vancouver start-up for a pretty penny, and many local VCs are now snooping around for the next one.

2

On May 19, 2006 12:55 PM, Warren Frey said:

Well, yes, that's true, but apparently Youtube is burning through $1 million a month. Google and AOL already have video services, and I can't see MIcrosoft snapping this one up when they can just leverage their Live initiative. So....another Yahoo purchase? With Terry Semel at the helm, I could see them taking Youtube and making it into the net's first ad hoc broadcast network, sorta kinda.

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