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Home

Google + YouTube = GooTube?

What happens when the world's most successful search engine purchases the largest online video sharing website in the market? A lot of people were quick to answer "GooTube!", but post the $1.65 billion Google-YouTube purchase analysts have rubbished any such possibilities. In fact, according to the terms outlined in the agreement, YouTube will continue to operate independently within Google, in an effort to preserve the site's spirit and brand.


Though there may not be any immediate effect on the YouTube name (some have pointed out that Google may change it over time), the deal certainly has implications on both the internet giants, competitors and others. Assureconsulting.com explores…

For Googlers and YouTubers

As a part of the same empire, the "natural partners" will offer a "compelling media entertainment service" according to Google CEO Eric Schmidt. Users will have a "better, more comprehensive experience" when they upload, watch, and share videos. The move also gives more opportunities to professional content owners to display their work to larger audiences…after all, Google and YouTube are merging their expertise to create what could potentially be the biggest video network on the web!

For Google and YouTube

According to YouTube comes with a lot of baggage in terms of lawsuits for hosting copyrighted material. Google's lawyers have a lot on their plate. Google and YouTube both must work with content producers to either prevent copyright content from appearing on their video web sites or to pay for the right to host the content. Without such deals in place, the content companies are likely to sue the operators for copyright infringement, much like they've done with most of the early digital music sites.

However, under Google's wings, YouTube is less likely to be sued over copyright as the former has both, its technical and deal negotiating resources in place to make things work, something that YouTube lacks as it is a much smaller company.

For Competitors

YouTube has a 45 percent share of the online video market, which is more than its top four competitors combined--social networking site MySpace (2nd) with more than 20 percent market share, followed by Google Video with about 10 percent and Yahoo Video and MSN Video with 6 percent share each.

For Google's competitors, the acquisition poses a lot of questions. What's in it for them? Should they build up on their existing video services? Should they also follow in Google's footsteps? Even if they were to, there are no potential parties for them to go after or consider, though analysts do think that smaller video networks like Guba or Revver, whose values have gone up after the purchase of YouTube, might get picked up in a reactionary move.

For Advertisering Revenue

The question still remains-can the popularity of online video translate into advertising sales? For Google it most probably will. Besides Google having the technical and legal know-how, infrastructure and bandwidth to cut costs, YouTube currently does run AdSense and almost 99% of Google's total revenue comes from AdSense. For players like Microsoft and Yahoo getting a foothold in contextual advertising market without the brand recognition and a sufficient volume of traffic it will be difficult.

They have arrived!

YouTube will retain its distinct brand identity, continue to be based in San Bruno, CA, and all 67 YouTube employees will remain with the company and with Google's technology, advertiser relationships and global reach, YouTube will continue to build on its success as one of the world's most popular services for video entertainment where as Google has just entered the online video business big time.

We just have to wait and watch! (Pun intended!)

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