YouTube, although the establishment of only 19 months, but has become the darling of the Internet video site. The video has reached 100 million, YouTube's success attracted other new startups and giant jealous, Microsoft entered the video sharing market, launched its own service; this summer, SKYPE and KAZAA also introduced a Venice project to become a YouTube killer.
In this hectic situation, people seem to forget that so far the video sharing is still a high investment, low profit, non-profit business. YouTube plans to launch a new business model, each user can put their own video content. It should create their own advertising, and plans to spread through the Googel and Yahoo.
YouTube monthly inputs from 900,000 to 1,500,000 U.S. dollars, most of the inputs to the server provider and broadband provider in the hands. As the YouTube video piracy issues are being addressed, if faced with legal proceedings, the cost will be higher.
More importantly, it faces a difficult problem, how to achieve profitability? YouTube can make money from this growth, while maintaining the user can expand. If the introduction of advertising, the user can be alienating. Given this risk, YouTube founder Chad
Hurley and SteveChen on advertising is not eager to implement. In a two or three minutes of video in the tentative 30-second commercials running. YouTube in the development of a new model that allows advertisers to set up video channels on YouTube's home page or to place video content.
To open up new channels for advertising, logically possible, but in this competitive environment, how to seek avenues of cooperation? YouTube, Warner Brothers introduced the first branded channels, and promotion ParisHilton new CD. But for those who are not content businesses, another method is to build a theme-based management of channels. Or YouTube through technical means and in accordance with the user's browsing interest ads. But advertisers still want to have another level of filtration protection, AvenueA / Razorfish director of online advertising company, said Jeff Lanctot: "If my ad just put on a very funny video films in the vicinity, although you do not like to stand still."
Another problem is that, YouTube does not help advertisers achieve the best video content. Gartner analyst Allen Weiner said institutions, YouTube could create separate channels to provide more professional video content.
So far, YouTube executives have been no positive stand on the advertising business. Company wants users to pirated content on the automatic filtering, for advertisers to establish an innovative approach to community faces enormous challenges, such as organized or sponsored the film festival video competitions.
YouTube, a good beginning, but a new generation of mainstream sites and new start-ups than before, its impossible to have too much time to get into video services, real money.
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