Now don't get me wrong, I like YouTube. Being able to show my girlfriend the end of Rocky in order for her understand why I yell "ADRIAN!!!" around my apartment is a nice gift to society. And I applaud YouTube for turning online video, usually portrayed as "Codec Slickers 2: The search for XVID," into a simple thing that even my Mom can get behind.
But what I don't get is why YouTube is worth $1.65 billion dollars? Towards the end of yesterday, Matt piped up when he saw the headline and said, "Wow, that's like buying 3 small countries." He was far off -- more like 7. Or to put it another way, YouTube is worth more to Goggle than all of the Virgin Islands -- population 108,605.
But why? Everyone says that it will be a "lucrative marketing hub," but it has yet to monetize much of its 100 million videos served per day. It's trying, don't get me wrong, but they spend nearly $1 million dollars per month on bandwidth bills alone. It's going to be a long, hard, uphill battle to make some cash for YouTube. Content partnerships with studios and record labels will help, but let's not forget that YouTube is already hosting a lot of copyrighted content -- which makes them a lawsuit magnet.
So, am I crazy? Is YouTube really worth $1.65 billion? Will it last long enough to find out?
But what I don't get is why YouTube is worth $1.65 billion dollars? Towards the end of yesterday, Matt piped up when he saw the headline and said, "Wow, that's like buying 3 small countries." He was far off -- more like 7. Or to put it another way, YouTube is worth more to Goggle than all of the Virgin Islands -- population 108,605.
But why? Everyone says that it will be a "lucrative marketing hub," but it has yet to monetize much of its 100 million videos served per day. It's trying, don't get me wrong, but they spend nearly $1 million dollars per month on bandwidth bills alone. It's going to be a long, hard, uphill battle to make some cash for YouTube. Content partnerships with studios and record labels will help, but let's not forget that YouTube is already hosting a lot of copyrighted content -- which makes them a lawsuit magnet.
So, am I crazy? Is YouTube really worth $1.65 billion? Will it last long enough to find out?
The author's views are entirely their own (excluding the unlikely event of hypnosis) and may not always reflect the views of Moz.
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