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    Rabble Rousing Random Ramblings by S Jagadish is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License.

    October 10, 2006

    Google to buy YouTube

    It was always going to happen. I'd suspected hoped that Yahoo! would have done so, but clearly Google beat everyone else in the race. YouTube had no real business model to make money, aside from trying to serve ads. YouTube had been thinking of inserting commercials at the start/end of every video, but that'd have severely impacted their loyal user base.

    In the long run, revenues only through advertising was never going to be a money-spinner. Hosting and serving video content is very costly when it comes to bandwidth consumption and despite the decreasing prices of hosting and bandwidth, in the absence of a revenue stream, it was always going to be tough to justify the outflow of money.

    Google announced yesterday (US daytime) that it was acquiring YouTube for US $1.6 billion in stock. This deal gives Google access to a huge volume of user-generated video content, along with a lot of content violating copyrights.

    And no, it isn't immediately apparent from what the founders, Chad Hurley & Steve Chen, say in their video, if YouTube will now be called Youuugle, GooTube or GoogTube.


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