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Google Buys YouTube. ¿Qué?
The author's views are entirely their own (excluding the unlikely event of hypnosis) and may not always reflect the views of Moz.
Now don't get me wrong, I like YouTube. Being able to show my girlfriend the end of Rocky in order for her understand why I yell "ADRIAN!!!" around my apartment is a nice gift to society. And I applaud YouTube for turning online video, usually portrayed as "Codec Slickers 2: The search for XVID," into a simple thing that even my Mom can get behind.
But what I don't get is why YouTube is worth $1.65 billion dollars? Towards the end of yesterday, Matt piped up when he saw the headline and said, "Wow, that's like buying 3 small countries." He was far off -- more like 7. Or to put it another way, YouTube is worth more to Goggle than all of the Virgin Islands -- population 108,605.
But why? Everyone says that it will be a "lucrative marketing hub," but it has yet to monetize much of its 100 million videos served per day. It's trying, don't get me wrong, but they spend nearly $1 million dollars per month on bandwidth bills alone. It's going to be a long, hard, uphill battle to make some cash for YouTube. Content partnerships with studios and record labels will help, but let's not forget that YouTube is already hosting a lot of copyrighted content -- which makes them a lawsuit magnet.
So, am I crazy? Is YouTube really worth $1.65 billion? Will it last long enough to find out?
But what I don't get is why YouTube is worth $1.65 billion dollars? Towards the end of yesterday, Matt piped up when he saw the headline and said, "Wow, that's like buying 3 small countries." He was far off -- more like 7. Or to put it another way, YouTube is worth more to Goggle than all of the Virgin Islands -- population 108,605.
But why? Everyone says that it will be a "lucrative marketing hub," but it has yet to monetize much of its 100 million videos served per day. It's trying, don't get me wrong, but they spend nearly $1 million dollars per month on bandwidth bills alone. It's going to be a long, hard, uphill battle to make some cash for YouTube. Content partnerships with studios and record labels will help, but let's not forget that YouTube is already hosting a lot of copyrighted content -- which makes them a lawsuit magnet.
So, am I crazy? Is YouTube really worth $1.65 billion? Will it last long enough to find out?
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