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« Media 2.Uh-Oh Part 4: Go Wide | Main | Email exchange with Milton Friedman »

October 29, 2006

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Jake Lockley

I think Google bought YouTube for the market, the same reason Newscorp bought MySpace IGN and GameSpy. Google's search is a loss leader. Remember their business is about metadata and using it to sell ads and broker traffic with other search engines.

Remember Geocities. That was a bad product but a good example of the big company buying a market and using it's core business model on it until it's life is over because the landscape (pipe) has changed as it does constantly. Blogs are the web pages. MySpace.com is the new Geocities. If you think even farther back you could say MySpace is the new AOL. Now YouTube is the new MySpace.com.

The markets and the technology will come and go but never forget that it's all about the metadata and building behavior profiles on users. Those profiles are where the value is.

Jon Lawrence

Hm... great article... but where does it leave even low-cost independent content producers?

Low-cost is still hundreds of thousands of dollars for an original program of over 60 minutes, and you're right, the whole world isn't going to be interested in 30 seconds clips of fountains from diet coke bottles for long.

Content producers will only produce so long as there is a profitable market for their product.

Mike Johnson

Fantastic article. Thanks.

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