YouTube, Google, and the Rise of Internet Video
Google missing the “video” opportunity:
* Poor initial design:
Google launched its Google Video service in January 2005. It designed its website with features where users can search videos. Google wanted to ease the viewing of television programs by helping users search TV shows and discovering where and when to watch matching television programs. Google lets users find the videos in the search history and bookmark it, but it's more difficult to do it. This design did not go well with users. Compared to YouTube, YouTube had a more simple design where searching of videos was easy. * Lacking openness:
It did not show the number of views, links to a video, so users could have a better perspective about a video instead Google showed the number of views only to the uploaders. To upload UGC users had to first submit their videos to desktop client which had to be downloaded and installed first. * Unsatisfactory Service:
Google video service was unsatisfactory compared to other UGC video sites. It did not show the actual video instead it showed the list of related video and news related to the searched video and still images of original video. Google Video has disappointed twice it was first a TV shows search but without videos and then a site that required a software to play videos (a version of VideoLAN). Google offered new flash technology which was faster for uploading videos but it was slow. * Copyright Issues:
Google is more inclined to remove copyrighted content and to sell premium videos. Whereas YouTube has a lot of free music videos and TV shows without having the legal right, so it attracts more people. This gives an advantage to YouTube and other competitive websites. * It came with a cost:
Google video offered premium content and payment had to be made through Google checkout. Whereas, YouTube users could upload, view and share video clips free of charge.
Google’s/YouTube’s Business Strategy:
There might be some reasons behind the acquisition of YouTube by Google that were not known to public. It is obvious that 1.65 billion USD price were far too high for its intrinsic value. Hence, we believe that Google could gain strategic advantage for doing so.
* Transformation into Video Search Engine:
Initially after the merger you tube decided to remove all the copyright materials from the site and follow the policy of removing any video upon the notification from the notification from the legal copyright owner due to which different production company can approach to the sites to advertise and upload their videos on the sites. But after one year Google announced to plan to transform Google videos into a video search engine and begin to index you tube videos add personalized recommendation on the homepage and moreover even they announced that Google video was operating as a free video –sharing and video search engine .
* Advertisement Revenue:
During this acquisition there was a new trend going on for Online Advertisement which would fluctuate from $1.6billion to $8.175 billion in the period of 2006 to 2011 so by taking this factor in the consideration Google/You Tube decided to launch an advertisement program within the you tube videos and the program encouraged the website developers and blog authors to embed you tube videos in their sites and the revenues from this advertisement would be shared within web site.
* Customer Satisfaction:
There were many customers of Google who were used to the search engine which made customers rate of access to the website increment. If those customers get similar facility in you tube then it will change their perception towards accessing other video gallery websites and cause a sudden attraction to you tube through influence. As a result more people will be informed about the sources for watching streaming videos. In this case, YouTube videos can be listed on the top of the search result...
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