It is no secret that YouTube was a major catalyst
to the online video sites. As the market was becoming flooded with multiple
sites that offered new videos of the day, YouTube was the only one willing
to take the risk and allow their very own users waste bandwidth by uploading
multiple, uncompressed copies of various video that is either home made,
production quality, or ripped from film and television; funny commercials
are always a hit.
Though many of the smaller sites now have difficulties defending themselves
against YouTube and its software, the popular site has definitely earned
its position. Losing more than most would be comfortable with up until March
of this year, YouTube was risking millions. Fortunately, the risk is about
to pay off.
Google Looking to Buy YouTube
According to Reuters,
Google Inc is in talks to buy popular Web video site YouTube Inc. for close
to $1.6 billion.
YouTube has quickly ascended to the rank of top Internet video site since
it was founded in February 2005 by letting users share homemade video clips.
The site has been a subject of buyout speculation for months since its Chief
Executive Chad Hurley was the toast of Allen & Co.'s media mogul retreat
in July. Hurley has said in interviews with Reuters and elsewhere
that the company was not up for sale.
The site reports serving about 100 million videos daily and has attracted
scrutiny from major media companies for pirated versions of copyrighted
entertainment appearing on its pages.
Up until recently, the site did not trouble its viewers with any advertisements.
With its debt in bandwidth alone becoming a major crunch, YouTube users
began to see ads from Google Adsense and, later, flash banners.
YouTube commands a 47 percent share of the online video search market as
of September 30, compared with 22 percent for News Corp.'s MySpace video
site and 11 percent for Google Video, according to Internet measurement
firm HitWise Inc.
YouTube site serves about 32 million unique visitors monthly and has about
$11.5 million in venture capital financing from Sequoia Capital.
Expect a confirmation on the acquisition by the beginning of next week.