Determing YouTube as a success or failure

Submitted by Patrick Grote on Mon, 08/28/2006 - 11:00pm.

YouTube has taken the world by storm if you read the pundits. The site allows users to upload video, which is then very easily moved around the internet. But is YouTube really breaking new ground? Can they survive? Let's take a look.

The inspiration for this article is Bill Simmons' latest column on ESPN entitled The YouTube Hall of Fame. As I was walking through the clips I began to wonder about the future of YouTube.

There are a number of concerns about YouTube's viability. Here are the top three:

Is it legal? Many will argue that it's fair use to show a clip of something, but if you look through YouTube you'll find video of events or shows that are clearly outside the realm of fair use. While YouTube will take down a clip if the rights owner forces the issue, there is no method of verifying ownership on the upload.

How do they make money? YouTube displays very little advertising, and they really don't do marketing tie ins. Will they have enough money to increase their resources?

Can they scale? YouTube doesn't expire videos. What was uploaded when they started is still available. The growth of YouTube has been momentous, but can they keep building and building?

I don't know the answers to the questions, but with so many competitors on the internet they aren't the only kids on the block anymore. Every company needs to make money, but can YouTube make money and keep their users?


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