Slashdot Mirror


YouTube Growing ... Like Cancer?

PreacherTom writes "The success of YouTube has been staggering: they currently field 100 million videos per day and have attracted the attention of influential people like Bill Gates, who may be planning his own video hosting service. However, growth does not always equal profitability. Incorporation of ads risks their very base. If that were not enough, like Kazaa, they struggle with the Damocles' Sword of Litigation hanging over their head each day while bandwidth and server costs continue to rise. Is this phenomenal growth only rapidly killing our favorite video warehouse?" From the BusinessWeek article: "YouTube could easily alienate its users by overwhelming them with ads. And the startup has to figure out how to attract a broader group of marketers by filtering more for copyrighted or offensive videos and by creating more channels of similar content. Aware of the risks, YouTube co-founders Chad Hurley and Steve Chen are moving slowly to ramp up advertising. They have been wary of asking viewers to sit through a 30-second ad before a two- to three-minute clip. Instead, YouTube is developing new formats, like ones rolled out in August that let marketers build their own video channels or pay to place a video on YouTube's popular front page."

174 comments

  1. Content, ads, legal, pay to play by ackthpt · · Score: 5, Insightful

    Is this phenomenal growth only rapidly killing our favorite video warehouse?"

    Which one would that be? I don't rent videos. More likely it's a sign that people are more interested in content than quality. Many of the videos I've seen are very poor grade, while the few who really care about HD-DVD and Blu Ray squabble off in the corner.

    YouTube could easily alienate its users by overwhelming them with ads.

    This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads.

    [legal threat] hanging over their head

    I expect this is due to the fact many videos are edits from television, easily spotted by the Sky or whatever logo in the corner.

    pay to place a video on YouTube's popular front page."

    Oh the vanity! People really do that??? If I want you to see my video I'll put it on my own site and mention it somewhere, maybe even slashdot and it it's interesting word will get around, if it's not, my ego won't be crushed. I will be pissed if those weasels at thinkgeek steal it for another merchandising product.

    It is rather amusing to look back several years, if you remember a particular broadcast of some dot-commer telling someone at CBS(?) they would be burying the network, with whatever the heck it was this particular dot-commer had to offer over the budding internet. His company, IIRC went bust with a lot of others. Now look at the rabble scrabbling on YouTube, Google Video, their predecessors and whatever else will come along.

    --

    A feeling of having made the same mistake before: Deja Foobar
    1. Re:Content, ads, legal, pay to play by b0r1s · · Score: 5, Insightful

      This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads.


      The difference, of course, is that most of YouTube's bandwidth (read: expenses) comes from embedded video players on other sites. The people embedding these videos want the videos - not the ads. Unlike the examples you cite, where ads are placed around content, ads in videos must be placed before, during, or after content - replacing the content for the duration of the ad. This interferes with user experience, which is why it's fundamentally different than Yahoo, Google, eBay, and Slashdot.

      --
      Mooniacs for iOS and Android
    2. Re:Content, ads, legal, pay to play by truthsearch · · Score: 2, Insightful

      This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads.

      Those sites introduced unobtrusive ads relatively early in life. If Google put up interstitial ads (basically the web page equivalent of a commercial you watch before showing a video clip) everyone would be very annoyed. If eBay made you click through ads before seeing an item's detail they'd lose a lot of visitors. It's very important to introduce ads early and in a way that will alienate as few visitors as possible.

    3. Re:Content, ads, legal, pay to play by urbanradar · · Score: 2, Insightful

      > This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads.

      That's different. Yahoo, Google, eBay, Slashdot, etc. show ads as part of a website. You can just ignore them, you can still access the content of the website you're looking at while the ads are on-screen (and nowadays, you can easily block them if they bother you that much, too).

      YouTube would most likely have to integrate their ads with their videos. An ad before a video starts actually *keeps* you from looking at the content you want, actively takes away your time and can't be ignored (and probably not blocked without blocking the actual video, either). In other words, it'd be far more annoying and intrusive than the ads on the websites you mentioned.

    4. Re:Content, ads, legal, pay to play by Kenja · · Score: 1

      "Oh the vanity! People really do that??? If I want you to see my video I'll put it on my own site and mention it somewhere, maybe even slashdot and it it's interesting word will get around, if it's not, my ego won't be crushed. I will be pissed if those weasels at thinkgeek steal it for another merchandising product."

      Um, sure they do. You see, unlike yourself some people have somthing to sell. Bands such as "ok GO" (just to name one) will pay to place their video on the front page because it sells CDs and tickets. Same with video game makers, etc.

      --

      "Have you ever thought about just turning off the TV, sitting down with your kids, and hitting them?"
    5. Re:Content, ads, legal, pay to play by ackthpt · · Score: 3, Interesting

      If eBay made you click through ads before seeing an item's detail they'd lose a lot of visitors.

      I don't know where you've been, but I'm running into these things constantly on eBay and paypal -- I'm taken to a full page ad I have to find the button to get past to go where I was intending to go, not this fscking billboard.

      Alas, I'm still there because I want to buy, sell or pay for stuff, so I have to put up with it. If YouTube's offerings are good enough they can probably pull it off as long as they aren't making you sit through 30 seconds. 5 Seconds is a lot of time and if used well could accomplish what the sponsor wants.

      Ad sponsors need to look beyond the current model of television/radio advertising. It's astounding where it has come from, back in the 40's and 50's the company often had a very direct hand in it's own advertising and it showed, by interferring with programming and rather stupid advertisements. Today most leave that to an agency which is very good at using sex or perception of inadequacy to sell everything from make-up to cars.

      Besides, with the pay to be on the front page feature, I can see Coke, Dell, Revlon, whomever, creating their own guerilla videos, which are really ads in disguise, and peppering YouTube with them.

      --

      A feeling of having made the same mistake before: Deja Foobar
    6. Re:Content, ads, legal, pay to play by pete6677 · · Score: 1

      Exactly. The obnoxious ads are primarily a result of clueless marketeers failing to realize the internet is NOT the same as TV. The sooner they abandon the 30 second annoyingly stupid commercial, the better off they will be.

    7. Re:Content, ads, legal, pay to play by ackthpt · · Score: 1

      Um, sure they do. You see, unlike yourself some people have somthing to sell. Bands such as "ok GO" (just to name one) will pay to place their video on the front page because it sells CDs and tickets. Same with video game makers, etc.

      Sure, and Coke could do the same thing. BUT, if this stuff is all chaff, people will eventually ignore it and just cruise over to where they want to go. Most of the references I've seen so far are direct links to videos. I don't even know what their home page looks like, as I've never visited it, though I have seen a lot of videos.

      --

      A feeling of having made the same mistake before: Deja Foobar
    8. Re:Content, ads, legal, pay to play by identity0 · · Score: 1

      pay to place a video on YouTube's popular front page."

      Oh the vanity! People really do that??


      Think guerilla marketing... Now, instead of stupid people doing dangerous stunts, you'll get to see stuntmen acting as stupid people doing dangerous stuff, then quenching their thirst with Gatorade(TM). If they ever fully enforce copyright laws on YouTube, the only things left will be home videos and product placement ad videos.

    9. Re:Content, ads, legal, pay to play by Ciarang · · Score: 2, Interesting

      There's no reason why they couldn't amend the video directly to put ads 'around' the content, such that they'd still be visible in an embedded player. Or they could overlay ads. Still, I'm not convinced that level of bandwith usage is ever going to be covered by non-obtrusive ads.

    10. Re:Content, ads, legal, pay to play by ackthpt · · Score: 1

      Think guerilla marketing...

      Right, but if it's crap the videos on the front page will all lose cred and people will stop trusting whatever is on the front page is good.

      --

      A feeling of having made the same mistake before: Deja Foobar
    11. Re:Content, ads, legal, pay to play by raehl · · Score: 3, Interesting

      Oh the vanity! People really do that??? If I want you to see my video I'll put it on my own site and mention it somewhere, maybe even slashdot and it it's interesting word will get around, if it's not, my ego won't be crushed. I will be pissed if those weasels at thinkgeek steal it for another merchandising product.

      If you have video content that you want internet users to see, like a commercial, the front page of YouTube is a very, very good place to put it. Why? Because the people looking at the front page of YouTube are, by definition, people who both CAN and WANT TO look at videos on the internet.

      It's otherwise hard to get video content to internet users. Many don't have the bandwidth or the software to play the video in the first place, others you risk angering by essentially taking over their sound system to display your ad.

      People going to YouTube are already predisposed to WANT to watch videos. That's what they are there to do.

      So, I'll go ahead and solve YouTube's problem for them: Like Google, have a 'paid placement' section alongside the rest of the videos. Let people pay to have their videos where people can see them. You might even let people pay to have videos display with ceretain keywords. Maybe I search for 'Dew' and along with the rest of the results, I get the latest Mt. Dew commercials. Just like I find the ads returned with search results on google HELPFUL when I'm using Google to search for a commercial service, I might find video ad results helpful when searching YouTube for videos.

      Don't piss off your users by MAKING them watch, or by having the videos run automatically - leave it to the advertisers to generate YouTube commercials that are ENTERTAINING. Then let YouTube do what it does best - spread the word about entertaining videos.

      There's also a bonus here - there's no reason that the person who charges the advertisers NEEDS to be YouTube directly. If I can buy placement for my video, I might get an advertiser to pay me to create a video, integrate their ad into my video, and then pay YouTube to make sure my video gets seen. You could create a whole new advertising medium where video producers effectively 'buy airtime' on YouTube through paid placement and then pay for that by selling commercials or product placement within their videos to other advertisers.

      YouTube would then become essentially the TVGuide of internet video content: Everybody with an internet video gets a listing, but people who want to pay get the full-page ads.

    12. Re:Content, ads, legal, pay to play by Anonymous Coward · · Score: 0

      as someone who has worked in the IT dept of one of the largest ad agencies for the past 5 years I can shed a bit of light on this.
      The people who make commercials are called "creative directors" and fancy themselves as creative. They enter their ads
      in festivals (did you know Cannes has a division for television commercials ?!@?) Collect awards and trophies, hire big
      name directors and photographers (and now, musicians . the jingle house has gone the way of the dodo), and generally
      regard this crap as art and very very important....

    13. Re:Content, ads, legal, pay to play by hpavc · · Score: 1

      Yeah, ebay is a perfect example of how youtube could fail. Ebay is basically done with innovating and are just shaving more and more metal off each coin it seems.

      The place has the same usability staff as myspace.

      --
      members are seeing something, your seeing an ad
    14. Re:Content, ads, legal, pay to play by ackthpt · · Score: 1

      Yeah, ebay is a perfect example of how youtube could fail. Ebay is basically done with innovating and are just shaving more and more metal off each coin it seems.

      I'm not certain how you mean that. My take on eBay is their golden days are past them and now they're struggling because a lot of their need to keep growing and their 'innovations' are often very poorly thought out, incompatible with their other features or a barrier to getting things done.

      --

      A feeling of having made the same mistake before: Deja Foobar
    15. Re:Content, ads, legal, pay to play by bitflip · · Score: 5, Insightful

      The trick isn't that the ads are not part of the content, the trick is that they are mostly unobtrusive.

      If they try to put a 30 second, or even 15 second ad at the beginning of a two minute video, then it is highly likely to drive people off.

      But what about a two-second video, consisting mostly of a logo? Before the video starts, you see the "Intel Inside" logo, with their trademark chime, for example, which then quickly cuts to the desired content. If it is quick enough, then it will be effective at building brand awareness without giving the viewer time to hit the "back" button.

      I'm sure that advertisers would like us to sit through something longer. I'm sure they'd like for us to do nothing but watch ads. They need to make the ad fit the medium, in this case short videos.

    16. Re:Content, ads, legal, pay to play by rawdot · · Score: 0, Offtopic
      pay to place a video on YouTube's popular front page."
      Oh the vanity! People really do that??? If I want you to see my video I'll put it on my own site and mention it somewhere, maybe even slashdot and it it's interesting word will get around, if it's not, my ego won't be crushed. I will be pissed if those weasels at thinkgeek steal it for another merchandising product.

      Well, someone was willing to pay ABC/Disney $40M to run the pseudo-history of 9/11 this weekend... (Without running ads, even.) Or maybe they're doing it out of the goodness of their hearts. No wait, that's not right... Or maybe it is Right?

      Cheers,
      Richard

    17. Re:Content, ads, legal, pay to play by dyftm · · Score: 1

      Except they're just including a youtube-hosted flash file, right? So they could redesign the interface to have the video taking up a portion of the embedded area, and ads in the other portion, rather than just video. Problem solved.

    18. Re:Content, ads, legal, pay to play by Anonymous Coward · · Score: 0

      "> YouTube could easily alienate its users by overwhelming them with ads.

      This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads."

      The internal(*) and external ads are exactly why I don't use Yahoo!'s branded services for anything. I'm not everybody, but I'm also not nobody. I've been doing this a long time, and am completely comfortable ignoring the vast majority of ads on all web sites. Yet still, Yahoo!'s is much, much too much for me to want to use.

      I would rather use a search engine to find services that I know or suspect Yahoo! also offers instead of navigating from their home page.

      That's a powerful alienation.

      (*) They don't run that many external ads - not more than a lot of sites - but they more than make up for it with internal cross-promotion.

    19. Re:Content, ads, legal, pay to play by aplusjimages · · Score: 1

      IGN has the click through ads and it doesn't bother me at all. I'm still on there.

      --
      Can I bum a sig?
    20. Re:Content, ads, legal, pay to play by Praedon · · Score: 1

      That is a VERY Good point. If a two to almost maybe five second ad came up, I wouldn't have a problem with that at all. Its worth it, just to keep said place up, and I honestly believe sponsors would go for it, knowing that EVERY single play someone does, their two to five second ad will show... Then you also have the option of "Paid Subscription" to avoid the ads. This becomes a win/win/win situation for the consumer/business/sponsor.

      --
      Just me
    21. Re:Content, ads, legal, pay to play by rm999 · · Score: 1

      "More likely it's a sign that people are more interested in content than quality. Many of the videos I've seen are very poor grade, while the few who really care about HD-DVD and Blu Ray squabble off in the corner."

      I don't expect quality when I watch a 30 second video of a cat jumping into a wall. I do when I am watching a full length movie on my projector (or even 20 inch television, for that matter).

    22. Re:Content, ads, legal, pay to play by Zaphod2016 · · Score: 2, Interesting

      I'm not sure I would pay (as an advertiser) for a quick glimpse at my logo. However, what if the screen was setup like those horrible cable news channels: content above a small "strip" of ads at the bottom. Would that be a fair compromise?

      Buy product X...Go to this new website...Scam Co needs your money...

      Unlike the TV, if one of the ad headlines grabbed me, I could "take action" (click) right away, whereas with TV I tend to just surf away from commercials as soon as I realize it is a commercial (those buggers are tricky sometimes).

      Using Flash, these "border ads" would work fine no matter where I viewed the video...be it YouTube's site, embedded in a blog, etc.

    23. Re:Content, ads, legal, pay to play by xtracto · · Score: 1

      But what about a two-second video, consisting mostly of a logo?

      Hey that worked for me, I went to one of those videogame site (dont remember if it was IGN or gamespy or the others) looking for a video of the upcoming Dragon Quest game for the Wii. Before watching the video I had to watch something like 20 seconds of a Snickers add, after watching it I was able to see the 3 seconds video of the game. The thing is that I did got the desire to get a Snickers... grrr and the worst thing is that now that I remember it, I am again getting the desire of a Snickers.

      Anyway, 30 seconds add before or after the content (I presumably believe before the content is better) is okey, we are used to that, of course it would be good if the time of the ad was in some way correspondent to the time on the video, that is, watching an add for 30 seconds for a video of 3 is not good.

      --
      Ubuntu is an African word meaning 'I can't configure Debian'
    24. Re:Content, ads, legal, pay to play by pete6677 · · Score: 1

      Creative. Hah, that was good for a laugh! Most commercials are just ripoffs of some other commercial. Or worse yet an abomination of some pop song. These jokers think they are creative?

    25. Re:Content, ads, legal, pay to play by boingo82 · · Score: 2, Interesting
      I'm sure that advertisers would like us to sit through something longer. I'm sure they'd like for us to do nothing but watch ads. They need to make the ad fit the medium, in this case short videos.

      You know, I TRIED to do that...I tried to watch nothing but ads...there used to be a fun, free service where I could sit and watch ads. Maybe you remember it - it was called adcritic? You know what happened? It went to subscription. For a while it was around $400/year. Now it is $99/year. WTF? How is that youtube is free, with the amount of bandwith they surely use, but a site that is NOTHING BUT ADS costs $99/year??

      --
      As a republican I feel it my responsibity to manufacture criminals. People need punished!
    26. Re:Content, ads, legal, pay to play by 70Bang · · Score: 1

      "pay to place a video on YouTube's popular front page."

      Oh the vanity! People really do that??? If I want you to see my video I'll put it on my own site and mention it somewhere, maybe even slashdot and it it's interesting word will get around, if it's not, my ego won't be crushed. I will be pissed if those weasels at thinkgeek steal it for another merchandising product


      snicker. Listing Upgrade - Home Page Featured Examples. Look under "Example 3": Home Page Featured fees vary depending upon the type of auction and number of items. Please refer to the Fees page for more information.

      What high-quality items are currently featured?

      AUTO!!_BOOT_UP_ALL_COMPUTER!_FIX_AN...
      Die Heilige Schrift GUSTAV DORÉ 18...
      CASINOS HATE ME $1000/DAY SLOT MACH...
      4BR/2.5BA House- JUST SELLING FOR P...
      N0438-29(Free,Beige Hemp Tiger-Prin...
      LeGrandMerde.com - Own theBigCrap.c...
      ______________________________________

      There's no reason why they couldn't amend the video directly to put ads 'around' the content, such that they'd still be visible in an embedded player

      This is how the World Cup was generally broadcast in the US during '86. I don't recall how much earlier that started. I just remember when I was playing for a club and the refs would stop the game during the next opportunity when they saw later teams' members showing up, cautioning (generally, with a smile) them that if they overheard any discussion about any Cup game activity (and not just the outcome, thankyouverymuch) as they had their VCRs running and would find a creative means to punish offenders. I think this is when people would recall "take out the ref" plays (which were said to occur with some college teams; e.g., a chip shot just high enough to make a header possible and body check the ref. Thankfully, that stuff could only happen in hockey).

      The media knew soccer would eventually become "must see" (and some are still waiting) and was trying to find ways to get some ad compensation without cutting to an ad and saying, "While we were away, you missed a forty yard goal with a bicycle kick" and move forward. (These were the same morons who didn't know what nutmeg is. So they started scrunching the pitch a little and run ads in all four margins (usually Budweiser), then restore the pitch's image size. How times have changed (for this year's Cup): "Due to time constraints and little play activity, we'll move ahead into the game." And start the game at 6:37. Fortunately, the Jose +10 ads were outstanding. Worth teaching kids' teams about playing on pared pitches, even to playing walkthrough.

    27. Re:Content, ads, legal, pay to play by FLEB · · Score: 1

      I'll one-up that. Put the 2-second blurb at the beginning, then drop a still frame (or another blurb ending in a still frame) that links to the advertiser's website after the video. Captive audience at the beginning, but not enough to be annoying, then a link to more in-depth content at the end, where it's not getting in the way.

      Really, though, I think this sort of thing will be best used by advertisers who get in and create ad content that's both relevant to their product and entertaining enough to actually be a draw in and of itself-- make an ad so good that people look for it, not the other way around. With YT content being niche-friendly and disposable, they can also try more edgy or target-specific content that might not be worth TV distribution (or might not be suitable for a general audience), but would resonate on a much deeper level with audiences who "got it".

      --
      Information wants to be free.
      Entertainment wants to be paid.
      You just want to be cheap.
    28. Re:Content, ads, legal, pay to play by Firehed · · Score: 1

      Those ads are the ones that really annoy the shit out of me. One of two things happens: I'm watching the ad (because it's very distracting) thus missing the product, which I then turn into feelings of hatred towards the company and making sure to NOT purchase from them; or I'm just watching the content and completely ignoring the ad. Any sites that force embedded ads over usually five seconds or so don't get any return traffic from me, and, again, the bad feelings towards the advertiser. A few-second thing at the beginning would be the only type of embedded ad I'd tolerate. The problem with this on Youtube (and most other video sites) is that there's so much absolutely random crap that you can't effectively place ads that have contextual relavence, and a couple of morons at a beach imitating Mortal Kombat or whatever isn't really going to incline me to go out and buy a new shirt from Target or upgrade to a new Intel-based system. Tagging and whatnot could help a bit, but it's still probably not going to be especially effective. A few-second logo at the beginng, followed by uninterrupted content, ending on a clickable logo for the last frame is the only thing I'd really tolerate (which is true for most people I think, especially given the length of the content at Youtube), and is one of very few things that really stands a chance at being effective.

      --
      How are sites slashdotted when nobody reads TFAs?
    29. Re:Content, ads, legal, pay to play by Scrameustache · · Score: 1

      ads in videos must be placed before, during, or after content

      You know, I wouldn't mind ads after the content.

      It's wen they get it in their minds that they should interfere with my access to, or enjoyment of the content that I turn into a crafty pirate and I go in full circumvention/tech-savyness mode.

      But afterwards? Once I'm satisfied... I wouldn't mind. It would make avoidance of stupid/irrelevant/redundent/inconsequential ads easy (hence why they don't want to do it this way) but unnecessary, and I would probably let it run most of the time, while I'm mulling over the content in my head.
      But as their decision to abuse the "unskipable" flag demonstrate, they want to force us to watch ads, Clockwork Orange style. So the right way to do it is the least likely way these psychopaths will have it imlemented.

      --

      You can't take the sky from me...

    30. Re:Content, ads, legal, pay to play by Kevin+Mitnick · · Score: 1

      They should just put scrolling text ads along the bottom of the video playing. If there's not a revolt, introduce maybe 3 to 5 second quick ads.

    31. Re:Content, ads, legal, pay to play by forgotten_my_nick · · Score: 1

      I thought they found out that blipverts caused people to explode? http://en.wikipedia.org/wiki/Blipvert

      Seriously though. The rest of the world isn't desensitized to advertisements to the extent that the US population is. Even 1-2 seconds is annoying.

      What I can see happening if they add adverts to your content is people will just move the content elsewhere. There are already FLV encoders/decoders out there now free and loads of places you can host your content for free too.

    32. Re:Content, ads, legal, pay to play by Anonymous Coward · · Score: 0

      I use YouTube.com's video service to post not-so-awesome videos on my band's website. I personally have no problem with YouTube.com embedding 15-30 second ads in front of my videos because they need to find a way to create a viable revenue model to stay in business. If they embedded the ads after the videos I think most users would not stick around to watch them. The only thing I would object to would be tobacco/alcohol related ads, even though I do have an occasional beer. For those of you who still expect everything on the Internet to be free, you need to get over it.

      Allen D. Tate, Bass Guitar
      Chowder Monkey
      My band website: http://www.chowdermonkey.com/
      My MySpace page: http://www.myspace.com/BigAlBassMan

  2. The emperor has no clothes by grapeape · · Score: 5, Insightful

    "YouTube could easily alienate its users by overwhelming them with ads. And the startup has to figure out how to attract a broader group of marketers by filtering more for copyrighted or offensive videos and by creating more channels of similar content."

    YouTube could easily alienate its users who are mostly there to see the copyrighted and offensive videos to start with. Cleaning up YouTube might attract new marketers at the start but when the numbers decline what will YouTube have left? Sadly funny home video sites are a dime a dozen, YouTube has survived off its own lawlessness...kind of a catch 22 for them. I know I wouldnt want to own stock in them.

    1. Re:The emperor has no clothes by monoqlith · · Score: 2, Insightful

      I don't necessarily think that's true.

      If you look at most of the "top rated" and "most rated" titles on YouTube right now, onlya few of them aree clearly coyrighted and illegally posted. When i go to YouTube it's mostly for original works that I can't see anywhere else.

        And there a lot of situations where an illegally uploaded YouTube movie could conceivably benefit the copyright holder - in the case of posted television advertisements, for instance. Imagine all that free publiciity with literally zero air-fees. Thus, the prospect of litigation becomes less of a risk, even if it is still quite preesent.

      This may not be what most people do, but I don't think saying that YouTube "has survived off of its own lawlessness" is correct. It has survived because of its reliable flash player and sheer volume of fresh content, both original and copyrighted.

    2. Re:The emperor has no clothes by chrisinsocalif · · Score: 1

      Maybe the will go down the same way napster has, just not as dramatic.

    3. Re:The emperor has no clothes by vanyel · · Score: 1

      I've always said, if you want me to watch your ads, make them interesting enough to want to watch. There are any number of them that fit that bill: the Toyota RAV4 commercial on You Tube is one I've shown a number of people. Charge for hosting commercial videos like that and it'll pay for the rest...

      How well they work is another matter... several years ago I created some ads for the interior of bus and light rail for my ISP business. They were designed to be interesting to look at and read, while demonstrating some of the interesting things you could find on the Internet. The transit system got lots of calls from people who liked them. I got nothing but a few more months leaving them up for free from the transit system.

    4. Re:The emperor has no clothes by soft_guy · · Score: 1

      YouTube could easily alienate its users who are mostly there to see the copyrighted and offensive videos to start with.

      I have not really seen a lot of content on YouTube that I would call offensive. Believe me - I've looked!

      --
      Avoid Missing Ball for High Score
  3. Static ads by 0xABADC0DA · · Score: 1

    YouTube could easily get away with putting a static ad on the movie before it plays the first time. This wouldn't be too annoying and tied in with google adsense would work really well. Maybe it could be a transleucent so you could still see what the video was. I wouldn't mind that much, but any ad I have to actually sit through means a adblock on http: //*youtube.com/*

    1. Re:Static ads by Anonymous Coward · · Score: 2, Interesting

      They should think outside the box and put the ads after the video. Seriously, I wouldn't be surprised if it turns out that post-ads are viewed less frequently, but more effective enough when they are viewed to make up for the smaller eyeball share. Or they could just start their own cable channel.

  4. Well, I called it a Pox.... by hcob$ · · Score: 2, Funny
    YouTube Growing ... Like Cancer?
    Well, I always considered it a Pox, but if they want to upgrade it to a cancer, that's fine with me! Just means it will be attacked more forcefully when it's finally found.
    --
    Cliff Claven
    K.E.G. Party Chairman
    Founding Leader of: Koncerned for Egalitarin Governance
    1. Re:Well, I called it a Pox.... by grammar+fascist · · Score: 1

      Well, a pox or a cancer could seriously damage or kill its host, which is the Internet in this case. I don't think that's going to happen. I'm going to downgrade it to heinously bad gas. It'll pass.

      *rimshot*

      --
      I got my Linux laptop at System76.
    2. Re:Well, I called it a Pox.... by Anonymous Coward · · Score: 0

      Well, at least it'll stop it from aging...

  5. Alienate users with adds? don't think so by zaqattack911 · · Score: 2, Insightful

    Honestly, I don't get this web 2.0 "problem" of more adds = angry community.

    It's no secret these massive community sites cost a lot of money, anyone expecting to get it for free should expect to be subjected to some form of advertising.

    As long as they don't overwhelm the user with 1024x768 flash popups forcing you to watch a 15min coke add, I don't see the big risk of adding more advertising. WAKE up... money makes the internet tick.

    1. Re:Alienate users with adds? don't think so by pla · · Score: 4, Insightful

      Honestly, I don't get this web 2.0 "problem" of more adds = angry community.

      Well, let me put it in very simple terms - We found ways to gather and chat, for free, LONG before "Buzzword 2.0" ever appeared on the scene. Why should we have to start paying (with our time) for what we've had all along for free, just because some Johhny-come-lately media megacorp gave the same-ol a spitshine?



      WAKE up... money makes the internet tick.

      Wrong.

      Those who have money want you to think they run the internet. The internet, however, exists without CBS and MSNBC (you could argue it wouldn't have existed without Ma Bell, but she only owns one of many possible physical layers that it can use).

      YouTube, while not necessarily a viable business model, serves to prove this point - Copyright violations aside (though I don't mean to minimize how much they help), people flock to seeing all the low-quality home-made content - All the stupid pet tricks, stupid accidents leading to minor injury, camwhores, accidental news coverage, and even some of the less pathetic video blogs. NONE of that depends on having oodles of money. It all comes from the users, not the distribution method.

      Yes, someone has to serve all that content, but without YouTube, we'd just find it scattered around the 'net, hosted at a million tiny personal sites rather than one large aggregation of such content.



      But please, don't ever make he mistake of considering the internet anything like traditional broadcast media, where only the Big Boys with Big Bucks can ever even hope to have any control over it. WE currently control the net, and will continue to do so unless we throw that away for glass beads and whiskey.

    2. Re:Alienate users with adds? don't think so by Scrameustache · · Score: 1

      I don't get this web 2.0 "problem" of more adds = angry community. [...] anyone expecting to get it for free should expect to be subjected to some form of advertising.

      You don't get human nature: not wanting to be subjected to unpleasantness.

      --

      You can't take the sky from me...

    3. Re:Alienate users with adds? don't think so by shmlco · · Score: 1

      You're missing his point. Any large content aggregation site that attracts a big audience and serves up content off it's own servers has to pay for those servers and for all of that bandwidth somehow. It's the nature of the beast.

      It could be with ads, or donations (doubtful), or paid placements, or by corporate sponsorship (aka Wikipedia), but SOMEONE has to pay the bills. It could be "scattered arount the 'net" as you say, but then you lose one the biggest things that makes a site like YT popular: it's gathered all of that stuff up in one place AND made it easy to access.

      Not to mention that a popular video on someone's hosted server will kill THAT person's bandwidth and tend to /. out of existence. And yes, I've heard of BT, but now we have another level of complexity.

      Members of the "everything should be free" crowd need to recognize the fact that someone, somewhere, is paying all of the bills, and that, occasionally and in all fairness, that person needs to be them...

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    4. Re:Alienate users with adds? don't think so by moonbender · · Score: 1

      So you have heard of BT. Good. So what if it adds more complexity? It's still viable. Peer to peer networking for streaming content is difficult, but it's been done before. The difficulty isn't in designing a network that's technically able to deliver the goods in a distributed manner, the real difficulty is in seamlessly integrating it into the browsing experience. In theory, BT could be integrated into the browser just like any other transport like HTTP or FTP: Opera already downloads torrents, but the target would be to be able to use an HTML img tag with a (single file, not folder) torrent as the URL and have the image be downloaded and displayed on the fly, just like all the other URLs are retrieved.

      --
      Switch back to Slashdot's D1 system.
    5. Re:Alienate users with adds? don't think so by shmlco · · Score: 1

      Again you miss the point. YT gathers movies up and makes them easy to access. It's a place to send your stuff and have it be seen. Scattering things hither-and-yon across the web makes it harder. BT makes it harder. The explosion of different formats will make it harder. Not having categorization and rating and commenting systems makes it harder and much, much less useful.

      YT could use BT to distibute files and STILL need to pay for the millions of page views needed to host those other services, because it's those services that MAKE the content useful and accessible. It's not technology issues like having BT in a browser.

      If a tree falls in the woods, does anyone hear? If a movie lies unnoticed and unseen on a torrent server, does it really have any value?

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
    6. Re:Alienate users with adds? don't think so by moonbender · · Score: 1

      Huh? I did not talk about replacing YT with a normal BT tracker, I'm talking about seemlessly integrating BT (or any other P2P transport) as an alternative to the typical method of delivery, HTTP. YouTube could look virtually identical to the way it does today, but every file larger than 10k is distributed via BT instead of HTTP. This includes the web content, although distributed serving of dynamic content really is difficult. I think serving just the static content - including the movies - over a P2P network would make a huge difference to the overall traffic amount, though, apparently you disagree.

      --
      Switch back to Slashdot's D1 system.
  6. Paul Graham wrong? by Anonymous Coward · · Score: 0

    Does this fly directly in the face of Paul Graham's "Just make it popular and the money will follow" spiel?

  7. Internet Bust, Episode 2 by moracity · · Score: 3, Funny

    All the social networking and video clips companies are just leading the charge to the next bust. The business model seems to be:

    1) start "social" website
    2) grow user base
    3) ??
    4) get bought out by Big Company X
    5) profit!
    6) site dies because it was lame to begin with
    7) SUCKERS!!! - Precious Roy

    1. Re:Internet Bust, Episode 2 by tritonman · · Score: 0

      yea, I don't understand this trend of spending tons of money to get lots of users with no idea of how to actually make money. They have to shell out tons of cash to pay for bandwidth, employees and hardware. Maybe I don't understand because I don't have an MBA, maybe in MBA college they will teach you why spending money without making money is a good idea.

    2. Re:Internet Bust, Episode 2 by revlayle · · Score: 1

      I think there will be a bust, but only in a certain PORTION of the world wide web. The first wave of actually useful sites that survived the first bust (and children of such successful online ventures) that do generate revenue I think will be sticking around. Web development personnel are building more and more intranet applications (larger demand than maybe 5 years ago IMO), so the job market may take a slight plunge, but I don't think nearly as bad as before. Yes, investors will get skittish, but I am hoping only skitting on the "OMG we know how to get lots of people here but, um we have nothing to really sell or generate money" sites... and continue to support (at the very least) the tried and true of the web or at least someone with a freaking business model that doesn't involve: 1) Make Site 2) ??? 3) Profit.

      Just an opinion and by no means am I ANY expert in business and economic matters. I just know how to program stuff.

    3. Re:Internet Bust, Episode 2 by protohiro1 · · Score: 0, Offtopic

      This is way OT, but is it just me or are Troll mods getting more common and more arbitrary? This was clearly not a troll! Just because something is controversial it isn't trolling.

      --
      Sig removed because it was obnoxious
  8. I see the future of YouTube: by JonBovi · · Score: 0

    Five million videos of stupid kids with webcams dancing to the Numa Numa song.

    Except the song will be removed due to copyright violations.

    1. Re:I see the future of YouTube: by Anonymous Coward · · Score: 0

      Five million videos of stupid kids with webcams dancing to the Numa Numa song.
       
      And here I thought that's what YouTube was today

    2. Re:I see the future of YouTube: by ZeroExistenZ · · Score: 1
      Except the song will be removed due to copyright violations.

      It would've been by now; After I uploaded a clip of "Family Guy" I immediatly got a "DMCA complaint" email starting out with This is to notify you that we have removed or disabled access to the following material as a result of a third-party notification claiming that this material is infringing

      That was within an hour of uploading that clip. However, some fragments of Futurama haven't gotten any such complaint.

      Considering the fact there are atm alot of "Family Guy" fragments on youtube, which haven't been removed, I believe companies are just sporadically complaining about a clip that appears on the frontpage as recently added instead of digging through the site. For now...

      --
      I think we can keep recursing like this until someone returns 1
  9. Article is spot on by UbuntuDupe · · Score: 1

    I honestly would have to agree that it's finally come time for YouTube to start thinking about the whole "revenue model" thing.

    1. Re:Article is spot on by nano2nd · · Score: 1

      Google didn't have a decent business model until 2000 when they nicked the Adsense concept off of goto.com. If youtube can survive the infrastructure costs associated with their massive growth, they should hang in there until they find their own way.

  10. Yes, Overwhelming with ads is bad by the_bahua · · Score: 1

    I think the folks at youtube are aware that a ton of ads will piss off and lose them some users. I don't see any problem with introducing revelant, inobtrusive text ads. Why is everyone jumping to the conclusion that the only way that Youtube can survive, "in the real world," is to hold its users' heads under water with a torrent of advertising?

    It doesn't have to be that way.

    1. Re:Yes, Overwhelming with ads is bad by Scrameustache · · Score: 0

      I don't see any problem with introducing revelant, inobtrusive text ads.

      But advertisers, who never were able to differenciate btween a computer's cathode tube and a television's, are now going "ah-AH! We always knew it was just a complimacated teevee! Bring on the ads! At least 30 seconds! No skipping! And lame-lame-LAME to boot!".

      Personally, I think every TV and movie studio executive should be executed, which would make the world a better place... Except for the ones that cancelled firefly, they should be made to recreate the War Stories episode, minus the heroic rescue.

      --

      You can't take the sky from me...

    2. Re:Yes, Overwhelming with ads is bad by Scrameustache · · Score: 1

      If a comment has not been rated, adding "overrated" is OBVIOUSLY an abuse of the moderation system. Q.e.d.

      --

      You can't take the sky from me...

  11. Who's favorite? by Matt+Perry · · Score: 4, Informative
    Is this phenomenal growth only rapidly killing our favorite video warehouse?

    Speak for yourself. Google Video is my favorite. It has a picture that scales to fill up unused space in my browser window. Plus, as a content creator, I can upload videos larger than 100MB which you can't do on YouTube. YouTube's limitation can make the quality of your video suffer if it is too long (20 minutes or more).
    --
    Slashdot: Failed Car Analogies. Amateur Lawyering. Anecdote Battles.
    1. Re:Who's favorite? by arth1 · · Score: 1

      Google Video is useless unless you have the right OS, right browser, right privileges, and want to watch the movies on the particular computer you're sitting at. There's no way to show the videos on my Showcenter, download them to my PDA, or watch without an active network connection.

      Granted, YouTube isn't all that much better -- it's just a different but similar Flash player.

      Heck, even on my Windows machine, I have to watch the Google/YouTube movies without sound, because Flash won't let me configure what sound card to use. Granted, most users won't have more than one sound card, but most software also do allow for setting this.
      Neither does it support overlays, so I can't get the video full screen on my second monitor, like with BeyondTV, WinDVD, Windows Media Player, nvTV, or just about any video application for Windows.

      I'd like to see a service like this that isn't Flash based.

      --
      *Art

    2. Re:Who's favorite? by mancontr · · Score: 1

      In Google Video you can download the vids in avi or mp4 format. And you can download the flv in every site. There's a plugin for firefox which makes it very easy: VideoDownloader

    3. Re:Who's favorite? by ottothecow · · Score: 1
      Google video's quality is much better than youtube's in terms of compression and the site is quicker and less busy so I try to use it much more than YouTube.

      YouTube however seems to be more social so some content is easier found on their site. Both however are very pervasive...My music professor loaded up a few youTube videos for the class back in april or may which shows that there is even some sort of legitimacy to it.

      --
      Bottles.
    4. Re:Who's favorite? by randomlinh · · Score: 1

      you fall into a very small minority. I too prefer google video, mainly because you can download it (granted, have to do it through the player--not counting 3rd party apps) and it edges out youtube on quality when streamed (downloaded versions are exact to what I uploaded, so that's nice).

      youtube has a much much better delivery system though. why can't I just have a page of thumbnails of videos from a certain user? i don't want it scrunched on side. navigation is terrible for google.

      and flash is nice because everyone will have it installed for the most part. has anyone seen stage6? I don't like the fact it's divx only, and another plugin that most people won't have... but quality is very very nice.

    5. Re:Who's favorite? by commanderfoxtrot · · Score: 1

      I much prefer Google video.... EXCEPT that on YouTube I can make videos private, whereas on Google all videos are public.

      I much prefer the Google uploader as well; and the servers are faster.

      At work, Google will happily upload at over 1MB/sec; whereas youtube trundles along at 50KB/sec.

      --
      http://blog.grcm.net/
  12. All in the name by Tx · · Score: 1

    If a YouTube is anything like a "u bend", then you pretty much know it will be transmitting large amounts of crap sooner or later, ads or not. Based on the last time I checked, sooner.

    --
    Oh no... it's the future.
  13. Front page? by MoOsEb0y · · Score: 2, Interesting

    People look at the front page of youtube? That's news to me. Only time I ever see youtube is when a video's linked to by a blog mentioned on a slashdot web 2.0 competitor's website...

    1. Re:Front page? by CohibaVancouver · · Score: 1
      >People look at the front page of youtube?

      I do... I'll often skip over there when I'm eating my sandwich to see what's new and amusing / interesting.

  14. This article makes an interesting point... by russ1337 · · Score: 0, Offtopic
    each day while bandwidth and server costs continue to rise
    The article correctly recognizes that Youtube are forking out money "hand-over-fist" to maintain their service. Should they be charged more money for 'hogging bandwidth' that the anti-neutral lobbyists would have you believe they are, any additional cost will likely be the straw that breaks the camels back.

    All the more reason to keep the net neutral. - services like this will not be able to operate under a non-neutral Internet.
    1. Re:This article makes an interesting point... by Anonymous Coward · · Score: 0

      How is parent off-topic Fucktard modder? It relates directly to Youtube's cost and 'viral spread', and the attention it gets. - which causes some to believe they should pay more - even though (as the article says) they are only scraping by financially.

      Just because you read "Neutral Internet and lobbyist"

      read the fucking posts nextime Mod-Tard.

      I'll see you in meta-mod land.

      Russ1337

  15. The simplest way for them to make money by MikeRT · · Score: 2, Interesting

    The problem with pay-for-play and other models is that there are big fees in the processing of the transaction. They should set up their own little financial system where people can transfer $5 from their bank account and then just directly transfer the money from there. ING Direct does this transfer for free for me, so I can't see there being any expense for them to do this on small payments. It'd require some overhead, but it'd be worth it as it would quickly infuse their site with a lot of cash. They could then just charge literally $0.01-$0.05 per transaction and make good money. That way, a $0.25 tip would earn several times more than it would on iTMS for the artists.

    1. Re:The simplest way for them to make money by Overzeetop · · Score: 2, Insightful

      That solves the problem on their end, but not on the consumer's end. You see, a single purchase of a $0.02 video will now cost $5. Of course, you get an extra $4.98 worth of content for free on that specific site, youtube.com in this case, but you're still out $5 to watch the first video. No, the micropayment system would need to be well distributed, and V/MC/D/AMX don't really want to get into the $0.02 charge game, and due to their effective opoly/cartel status they don't have to.

      --
      Is it just my observation, or are there way too many stupid people in the world?
  16. Sharing clips should be fair use by Stalyn · · Score: 3, Insightful

    I'm not sure if such a legal argument is tenable and as I'm not a lawyer I'm not going to attempt one. But the overall scheme is that sharing clips of copyrighted work without profiting from its sale should be considered fair use. The majority of television networks understand that the sharing of clips amongst Internet sites in the long run benefits them. It promotes their show and their network. That is why there isn't much of an uproar about copyrighted content on youtube. Of course entire works should be barred.

    --
    The best education consists in immunizing people against systematic attempts at education. - Paul Feyerabend
    1. Re:Sharing clips should be fair use by Anonymous Coward · · Score: 0

      One of the tests for fair use is "amount of the original work copied". "Clips" would probably be ok, but people are posting entire episodes.

  17. Video for The People by FlyingPostman · · Score: 1, Informative

    There have already been many examples of videos that would have never seen the light of day. Videos that would never be seen on TV, but can reach the same amount of viewers or more via the internet. Like videos of guys teaching you how to shave. http://www.youtube.com/watch?v=xjhIy9rgWQU

    1. Re:Video for The People by hamfactorial · · Score: 1

      Sweet, I was wondering if you found that on Youtube or through one of the wetshaving forums? I'm a shave geek myself (it's weird, I know) and was curious if people outside of the "shaving community" had seen his video series.

      --
      Did you know subscribers can see articles in the future? Holy shit!
  18. Some graphs to illustrate by jbum · · Score: 4, Interesting

    I made some lovely graphs to illustrate this growth. These graphs use actual thumbnails from youtube as data points.

    That's right - the medium is the message!

    1. Re:Some graphs to illustrate by x3nos · · Score: 1

      Nice use of the API jbum. I for one am glad to see that there is an apparent preference for "Cat" uploads over "Joke" as we all know abusive cat torture videos are what the internet is really about!

      --
      /* somewhat functional - fix later */
  19. Simple way to make money by Billosaur · · Score: 3, Interesting

    Charge a membership fee.

    Now, before everyone goes bonkers, lets think about this critically. Servers, the power to run them, the buildings to house them, the people to keep them running, the people to write the code that makes the site run -- these are not free. If you don't have a huge wad of cash burning a hole in your bank, then you've got to find a source of funding, one which won't suddenly dry up and leave you with no way to run the show.

    So charge for the service. Plumbers do it, lawyers do it (excessively it seems), hospitals do it... why not an Internet service? You pay your $20 a year and get free unlimited uploads. For those who don't like the model, you can have a free account, but we charge you a nickel for every upload. It might cut down on the megatons of crap that get uploaded, which would ease the strain on infrastructure and storage, generate constant revenue, which would ease money headaches, and generally improve things. And then, when YouTube gets so successful that it's ubiquitous, its CEO can embezzle huge amounts of money and leave the company broken while he sails away on his yacht.

    --
    GetOuttaMySpace - The Anti-Social Network
    1. Re:Simple way to make money by kamapuaa · · Score: 1
      At the rates you mention, you'd have to upload 400 videos a year before it'd be worth it to subscribe to the $20/year plan. They'd have to charge more, and they'd probably want to charge additional fees for the highly downloaded videos that dominate the bandwidth.

      There's no real reason to have brand loyalty to youtube - it works pretty well, but the controls are simple and it'd be easy for another company to copy. If youtube charges even a nominal fee, a huge amount of their audience will just jump ship to whatever's cheaper, or whatever their friends are using, etc. And it may well be that just charging the bandwidth costs would require a price point so high, users would abandon it in mass.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    2. Re:Simple way to make money by Peaker · · Score: 1

      The barrier for me is giving my credit card or any other form of payment on the net.

      I don't trust today's computers' security with my money, and definitely don't trust sites to take only what they advertise to take.

      I don't have time to be critical of every spending of every cent from my accounts, and I don't have time to fight for my money back in cases of mini frauds.

      Its actually not the money that stops me from using internet services, its the mere thought of giving them a credit card number or such.

      I would never watch a YouTube video even if it required 1 cent, and its really not about the money.

    3. Re:Simple way to make money by FishWithAHammer · · Score: 1

      As for trusting the money--some banks offer you throw-away card numbers that you can use only for $X dollars.

      --
      "You can either have software quality or you can have pointer arithmetic, but you cannot have both at the same time."
    4. Re:Simple way to make money by AmberBlackCat · · Score: 1

      Wouldn't they have to take down all of the videos from people who aren't members? They'd have no members and no content. The only way I think that could work is if they grandfathered in the existing members. Then they'd only have to worry about the millions of people pissed off because somebody's making money off their videos and they're not getting any of it.

  20. P2P by dduardo · · Score: 2, Interesting

    Someone needs to take the YouTube, et. al. concept and convert it into a P2P system that is easy to use. The p2p client could have a web interface to make it feel like current services and even use flash to show the videos downloaded locally.

    1. Re:P2P by soft_guy · · Score: 1

      If it were a P2P system, how would keep people from uploading one video and then substituting another video for it? (i.e. here's my nice video blog about ponies, but what I actually send out is goatse the movie.)

      --
      Avoid Missing Ball for High Score
    2. Re:P2P by timeOday · · Score: 1
      I don't know of any current, widely adopted P2P technology that's any good for streaming content. (Although skype *might* count).

      Though as a consumer, I hardly care. It's true that providing a service costs money, but those actual costs are only tied to usage fees in such an indirect way that it's hardly relevant to the consumer. You think ebay bases their fees on how much they need to stay alive? No. It's however much they think they can get. In an ideal market those figures would be closely related, but that ain't the real world.

    3. Re:P2P by Anonymous Coward · · Score: 0

      It is called cryptographic hashes. Every modern p2p system uses it.

      There are other problems with the grandparents idea though. Mostly related to the difficulty of p2p streaming and people who don't share as much as the leech.

    4. Re:P2P by earthbound+kid · · Score: 1

      That's only because ebay has no serious competition in the States. If it did, they'd cut fees back to costs (or lower, to starve the competition). The problem is that ebay is a kind of natural monopoly, since it's only worth listing your auction where people will find it.

  21. Said it before, and I'll say it again... by RyoShin · · Score: 2, Interesting

    Posted this in a related Fark thread, and I believe it still holds:

    I think that, somewhat ironically, TotalFark shows how websites will survive in the future.

    Even with the increase in ads and ad revenue, consumers are wisening up and finding ways to block them, and soon that well will go dry. So you can either overload your site with ads (which, ironically, means none of them get exposure since the overload causes the user to ignore them all), or you find another method of income.

    The solution? Payable accounts. Take Fark as the main example. The majority of users enjoy a few hand-selected odd stories surrounded by ads. These ads are actually targeted towards the general Fark demographic, so they get a better CTR.

    Then there's TotalFark. A verifiable anarchy of submitted stories, good, bad, and ugly. There are dozens of threads a day from people whining about the mose inane shit. Half of the links are repeats. Once a day we get a headline telling us to Google "miserable failure". But you know what?

    A few thousand people pay $5/month to see that stuff, myself included. And all it really boils down to is getting more of the same stuff that the free people do.

    This is how most internet sites will eventually turn. You have free stuff and then you have better stuff that costs money.

    YouTube could offer high quality videos to paying customers. Offer the ability to help "distribute" content for indie producers. They pay a fee (probably more than those that just get the higher quality stuff), and they get content featured on pages, more options for uploading, and other goodies. YouTube could even offer a service where producers can have made-to-order DVDs of their work for purchase by regular users. YouTube and the producers would split the profits.

    It would cost about $2 to make a custom DVD and package of something an hour or two hours long. Sell it for $5-$10 + S&H, and there you go.

    They could get started by allowing uploaders to "share" their stuff, and a regular user could pick clips adding up to, say, an hours worth and pay $10 total for a DVD of all that. You would have an issue with people uploading shows and what not, but they would be able to either hire people full time to police copyrighted stuff or have a volunteer network, where the volunteers get free DVDs/free upgraded accounts for helping to report copyrighted stuff.

    A lot of sites are already heading this way. LiveJournal has a pay service. You get a bunch of extra features, but mainly it's more of the same. MySpace will probably start locking some features behind a pay barrier, like streaming music, if ads don't make enough.

    Some sites, like general news sites or just general all around sites will meet some problems with this, but they will just do this in bits and pieces rather than the entire site (Yahoo! and MSN have already started on this path, and I wouldn't be surprised if Google starts charging for some new extra goodies).

    The way of the web, most media, will eventually decrease advertising as people are able to pick and choose what they want instead of being forced into packages.


    Slashdot's own pay-for service is another example of the trend, though the features you get with it are lacking. (Sorry, guys, but seeing a dupe a bit eariler than someone else, removing ads, and getting a nice * next to my name is not really worth the money.)

    1. Re:Said it before, and I'll say it again... by Red+Flayer · · Score: 1
      The way of the web, most media, will eventually decrease advertising as people are able to pick and choose what they want instead of being forced into packages.
      I'm not so sure of that -- it's just more efficient (and therefore cheaper) to force customers into packages, even when trying to please as many as possible. Plus, you get additional revenue from forcing people to buy an expensive package just to get the small subset of content that they really want. This has held true for cable (even with competition from satellite), and I'm sure it will continue to hold true for internet media.
      --
      "Trolls they were, but filled with the evil will of their master: a fell race..." -- J.R.R. Tolkien on Olog-hai
  22. Party Like It's 1999 by carpeweb · · Score: 2, Insightful

    Reminds me of the dot com boom.

    You remember, right? Back in the days when you didn't need a business plan?

    If YouTube hasn't already answered all these questions, then it truly learned nothing from the bust.

    1. Re:Party Like It's 1999 by kthejoker · · Score: 2, Interesting

      The flip side to this, though (and it's an uncanny idea) is that if YouTube didn't do it, *someone would*.

      It is simply a desired niche of the Internet to have video clips of all varieties easily available for searching, posting, and referencing.

      And ultimately there's no business model to support this. The SOLUTION is to subsidize this service with another service. It can be video-related (charge content producers for placement, or charge users for higher quality), or it can be otherwise (Google Video subsidized by all other things Google.)

      So what'll happen? YouTube will get bought by someone who can subsidize this in exchange for the goodwill of being YouTube. Someone like Time Warner or Disney/ABC or Blockbuster. In fact, if I were kind of invested in an old media (Blockbuster, New York Times, etc.) I would be verrrrry interested in acquiring YouTube to complement my actual moneymaking ventures.

      But the ultimate point is that whether or not YouTube has a viable *business* model is not relevant. A centralized video clip repository is something everyone wants, but no one is willing to pay for.

    2. Re:Party Like It's 1999 by timeOday · · Score: 1

      Not really. Pets.com and that online grocery place had real expenses (and not just their superbowl ads). Youtube is different. Bandwidth is cheap and getting cheaper every day, and other than that the site is mostly automated. Youtube did not start with a huge outlay of VC funding, either... it started small and just took off in popularity with users. I don't think they'll have much trouble supporting it with ads.

    3. Re:Party Like It's 1999 by carpeweb · · Score: 1

      ultimately there's no business model to support this

      Well, you suggest one in your very next sentence (cross-subsidy).

      I would be verrrrry interested in acquiring YouTube to complement my actual moneymaking ventures

      Complement is exactly the right word. Money-losing definitely complements money-making. Are you seriously suggesting that someone can "make it up on the volume"?

      the ultimate point is that whether or not YouTube has a viable *business* model is not relevant

      I can't think of anything more relevant to the discussion of whether or not YouTube has a viable business model ... than whether or not YouTube has a viable business model.

      You proved my point ...

    4. Re:Party Like It's 1999 by carpeweb · · Score: 1

      I didn't mean to imply that YouTube was following all the excesses of the dot-com boom. I was just observing that no one seems to care whether they had a plan for revenue or if they just figured they could "grow their way to profitability". Last time I analyzed that proposition, you needed a revenue model, which seems almost too obvious to mention as an essential part of a business plan. Maybe YouTube has this all figured in its plans. But the discussion up to the point where I made my OP seemed very dot-commie (pun intended) to me.

  23. Like Kazaa... by grumpyman · · Score: 1

    There are pirated TV/movies and other copyrighted stuff on it - which draws lawsuits and alike. But unlike Kazaa, YouTube does not depend on those to be kept alive - there are SO MUCH users created content it's not even funny. And I'll bet at least half of the use are for those purposes. At least for me, all the links I got from others in YouTube are all users created content.

  24. 1) Pox 2) Cancer 3) Plague .... 5) Profit!! by wsanders · · Score: 1

    I knew the Interweb boom was back again! We lose money on every transaction but we make up for it in volume!!

    Now, where's my 5000 TB EMC disk array?

    --
    Give a man a fish and you have fed him for today. Teach a man to fish, and he'll say "WHERE'S MY FISH, YOU IDIOT?"
  25. The best solution? Make good "commercials" by dividedsky319 · · Score: 1

    Most "commercials" are boring and pointless, and just focus on "you need this product!"

    If companies would make good, entertaining videos that people would actually want to watch, then they would have a perfect place on Youtube. They'd spread throughout the internet via e-mail and message boards and would be great exposure for the product just like any other viral video.

    The advertising firms just have to get more creative...

  26. Fast growth. by cjkeeme · · Score: 0

    YouTube is adding 65,000 new videos uploaded per 24 hours. The site has almost 20 million visitors each month, according to Nielsen/NetRatings. The value of this company easily exceeds 1 billion. I wonder if this is the fastest growing company ever.

  27. Where's the tough decision? by KalvinB · · Score: 4, Interesting

    Let's see, go bankrupt or alienate some visitors.

    Unless it's worth going bankrupt over and having a heck of a time getting financed for the next project, I'd say it's not a hard decision to risk losing some visitors in order to not go bankrupt. It's pretty pathetic when owners of a large site believe in the bandwidth fairy and fail to recognize they're the fairy. They're the ones paying for it.

    It's time to either start putting some limits in place to get costs below revenue or to raise revenue. And if some visitors can't deal with it, then good riddence to them. You don't need a bunch of leechers driving you into bankruptsy. They obviously don't care about you so why worry about them?

    1. Re:Where's the tough decision? by timeOday · · Score: 1

      Wow, you sound just like all those "portal" web sites that google obliterated.

  28. it's cost, not ideas by oohshiny · · Score: 2, Informative

    People often assume that something like YouTube, Palm, Tivo or whatever becomes big because someone had a unique insight. But, more commonly, it's simple cost and demand. Palm succeeded because chips and displays had gotten cheap enough to build a usable handheld. Tivo succeeded because harddisks and compression hardware had become cheap enough. For YouTube, bandwidth had become cheap enough to allow putting lots of video on-line and distributing it toe end users.

    However, even if things have become cheap enough to start a business, they may still not be quite cheap enough to sustain it; if YouTube needs to make more in revenue than delivering video content costs them, and it's not clear that they can. And whether they can depends less on any brilliant insights they may have, and more on consumer behavior, ad revenues, broadband availability, and bandwidth costs.

  29. Hackers Movie Reference by finity · · Score: 1

    My first thought was that this title was a Hackers movie reference...
    HAL:
    A rabbit replicates till it overloads a file, then it spreads like cancer.

    MARGO:
    Cancer?

    Even if it is pretty ridiculous, you have to admit it's a cool movie.

  30. I agree by shaneh0 · · Score: 1

    The example they gave of a 30 second ad before a 3 minute video clip. Like a user wouldn't be willing to spend 15% of the time viewing ads.

    I know this is groundbreaking, but it's my contention that a user just might be willing to watch, say, 20 minutes of ads for every 40 minutes of programming. Yes, I know this sounds CRAZY but trust me on this one....

    1. Re:I agree by lotrtrotk · · Score: 2, Interesting

      youtube is obviously the biggest player in this market right now. But Google, Microsoft & others all have the ability to fill that void, ad-free. If another company can provide the same service with no ads, how many viewers are going to stay just because its youtube? It may take some time for people to descover other sites. But I think eventually, the ads could push a lot of viewers away.

    2. Re:I agree by Denver_80203 · · Score: 1

      "I know this is groundbreaking, but it's my contention that a user just might be willing to watch, say, 20 minutes of ads for every 40 minutes of programming. Yes, I know this sounds CRAZY but trust me on this one...."

      Then you get a Tivo and Firefox with adblock...

    3. Re:I agree by blugu64 · · Score: 1

      Or just not watch it....I'll admit it makes watercooler conversations a bit harder...

      --
      "Personal ownership is a hallmark of conservative capitalism. And I don't believe I am entitled to anything that I did n
  31. Advertisers are going to have to suck it up. by raehl · · Score: 1

    One of these days, advertisers are going to have to realize that there are more americans interested in 'offensive' things than there are interested in 'wholesomeness', and accept that if they want to reach the largest market possible that it's ok if their ad runs next to a list of results for 'asian schoolgirls'.

  32. Mr Goats wedding care of the BBC. by Anonymous Coward · · Score: 0

    So you finally married the old Goat.
    http://news.bbc.co.uk/1/hi/world/africa/4748292.st m

  33. They could start by dropping the flash by jonwil · · Score: 1

    And moving to whatever it is that Google Video uses. (I believe its just a simple embed tag or whatever it is that pulls in the video file directly)

    1. Re:They could start by dropping the flash by protohiro1 · · Score: 2, Interesting

      Google video does the same thing. Flash video actually rocks. Great compression, fast reliable player and widely supported (requires flash player 7). Flash video player is pretty much everything that realplayer et al aren't. And the fact is there isn't a good, open embedded movie format yet.

      --
      Sig removed because it was obnoxious
    2. Re:They could start by dropping the flash by Anonymous Coward · · Score: 0

      No it sucks ass. What's worse is that people steal good quality clips from other sites and re-compress it to that bastard On2 format. Then everyone links to Youtube instead of the original. Generation loss FTL

  34. Subscription model would be best by cliffski · · Score: 1

    Theres not many videos on youtube I'd pay to view, and ads would certainly wind me up big time, but if they charged me say $20 a year for unlimited site access, I'd happily pay up, I get $20 worth of laughs just from watching TV bloopers.
    This assumption that ads will save all web companies is flawed. the existance of technology like adblock renders it useless in some cases, and there are only so many advertising dollars to go around.
    If subscription doesnt work, then paying to be the top video in categories might work too, but as a 'consumer' i'd prefer that the top videos were independetly ranked, rather than just bought up by Sony and Pepsi.

    --
    DRM-free indie games for the PC and Mac: Positech Games
  35. ytuber generation by 0xABADC0DA · · Score: 2, Interesting

    Occasionally I'll get on YouTube's site and search for something or browse through the top viewed/rated. I might sit through one 15 or 30-second ad, but often I watch a video for less than 10 seconds anyway. I'm not going to watch a 15 sec ad for that.

    Another time I see the videos is stumbling on some blog with them embedded. Usually there are several embedded in the blog. If the video or the description looks interesting I might give it 5-10 seconds to decide whether to watch it or click stop.

    I don't think I am the only ytuber like that. With anything more than 1-2 seconds I'm just not going to watch it unless I *know* it's something I *really* want to see. And I can't imagine kids having more patience than me.

  36. Ads? There already! by MattHaffner · · Score: 1

    There are already a ton of commercials in the YouTube content already. They just have to figure out how to tap into that. Companies are already getting free advertising when their funny/stupid ad gets uploaded and has hundreds of thousands of views in a few days.

    I've got it. They should send a letter to the ad agency or product company explaining that their ad is being watched by viewers without them having paid YouTube for showing it. They can threaten litigation or to delete the ad unless they pay to support the "free" advertising. Heck, start a subscription service where a company's or ad agency's commercials will not be automatically deleted. Instead they get unlimited viewing privileges. There's probably a model for that idea floating out there somewhere...

    1. Re:Ads? There already! by Arterion · · Score: 0

      I agree. Maybe companies should send their ads directly to YouTube. Some of them are entertaining enough to go watch just because. I know I've watched the Geico commercials more than once, and shown them too all my friends. I've typed in "King of the Hill" just to hear a bunch of kids play the theme music. If that's not advertising, I don't know what is.

      Though I'm not sure why a company would PAY YouTube to put their stuff up when they could just post it up there for free.

      A couple idea would be to allow a premium service, with new features, such as higher quality clips, or the ability to download clips in the original format. (flv is cute, but not very useful if you want to take a funny clip to a party, for example. It's a pain to convert.) They could also tap into the (probably mostly) unused bandwidth of it's own users by putting in a sort of torrent technology where viewers seed the video to other viewers while they are watching it. That might take some of the load off youtube. Enable it by default, but make it easy to disable for users with a clue.

      They could also have a "Featured Ad" on the front page, where a company pays them put up a funny ad. I'm sure users would watch it. Make it change every time the page is refreshed, with the likelihood of a particular ad coming be being based on how much they paid youtube for the listing.

      All that's off the top of my head. There should be plenty of ways for them to profit without forcing viewers to watch an ad clip before they see their video.

      --
      "That which does not kill us makes us stranger." -Trevor Goodchild
  37. Max Headroom to the rescue ... by ScrewMaster · · Score: 4, Interesting

    In the pilot for the old Max Headroom series, Network 23 pioneered a new type of advertising called "blipverts", fast, tightly-compressed burst of audio-visual information designed to prevent viewers from switching channels. Unfortunately, they had the side effect of making their "perpetual, more slothful viewers literally explode" but a similar idea could work here. YouTube doesn't have the advantage of conventional television, where people are watching a minimum 30 minute show, and will sit through a 30 second commercial spot in order to get back to what they really want. YouTube is offering what are essentially extremely short TV shows as their primary product with no real possibility of a commercial interlude. On the other hand, a two second advertisement presented at the beginning, if entertaining (or startling) enough, might be very effective yet not turn viewers off to the service itself.

    Heck, if they want this to really work they should offer a plan that would reward submitters for presenting typical YouTube videos formatted as advertising for specific products. Those videos could then be shown to advertisers, who could pay to have the ones they like presented to regular YouTube viewers as advertising.

    --
    The higher the technology, the sharper that two-edged sword.
    1. Re:Max Headroom to the rescue ... by Albert+Sandberg · · Score: 1

      Whatever that fucks up the mood while I'm watching telly series or film is going away fast, that's why I'm not watching telly for that reason alone... before/after content is alright, but not in the middle. Seriously, I'm not going there.

    2. Re:Max Headroom to the rescue ... by pjp6259 · · Score: 1

      Blipverts are exactly what I thought of when I read the summary.
      Unfortunately, they had the side effect of making their "perpetual, more slothful viewers literally explode" but a similar idea could work here.

      This is where we need to turn a crisis into an opportunity. We just need to harness the exploding people, and we can solve our energy and obesity problems all at once!

      --
      Computers don't make mistakes. What they do, they do on purpose.
    3. Re:Max Headroom to the rescue ... by Flamefly · · Score: 1

      You overlook the fact that people are not watching a 30 second commercial to watch a 30 minute program, they are infact watching about 10 minutes of commercials. Download an hour long program with the adverts stripped and you're left with 43(ish) minutes of content, that's 30% adverts people are willing to sit through, in addition to paying a monthly subscription!

      Scaling that down to a 2 minute clip leaves us with a advert of a whopping 40 seconds.

      Scary huh?

    4. Re:Max Headroom to the rescue ... by ScrewMaster · · Score: 1

      That's why I said a "two second" ad at the beginning: no way I'm going to sit through a forty-second ad for a two minute payoff. This doesn't scale down linearly, you're right about that. For that matter, I can't even stand watching regular TV anymore, too damn many commercials. There aren't that many shows I watch (the Stargates and a couple of others) so while I do pay for cable (my girlfriend likes channel surfing, unfortunately) I torrent the shows I do watch because they're generally commercial-free.

      --
      The higher the technology, the sharper that two-edged sword.
  38. add by Anonymous Coward · · Score: 0

    who gives a f@#k about ads as long as the ad people keep the f@#k quiet about content. its all the gabbing about the ads is what is annoying. people have to make money. let the people at youtube get theirs.

  39. Why do we always look at ads and memberships? by Ynsats · · Score: 4, Insightful

    They are not the only way to garner revenue from a site. Look at eBay. It costs me nothing to browse the marketplace there and if I want to bid, my account is free. If I want to sell my wares there, it'll cost me. However, because of those fees, eBay's ads are not intrusive and barely noticable.

    The whole allure to YouTube is the fact that it's free to watch. I REALLY can't stand going to a site to watch some linked video only to have to sit and wait for the ad to load first and then I have to wait for the ad to finish playing and then I still have to wait for the video I went there to see to finish loading. I'll click out of that browser window before the ad even finishes playing. It's a waste of time. What is even more infuriating is depending on server load, it can take forever to load that ad because that same ad is being loaded by millions of computers all trying to view different videos.

    That is what kills these sites, these excessive ads and membership fees. I think eBay has one of the best revenue generating models out there. Whether they are profitable or not is in the hands of thier management. I think that if YouTube wants to stay on top of the game yet be attractive enough to get investors to infuse capital then they need to start looking at a fee based system subsidized by ads and maybe a premium, fee based viewer service.

    Charging the average viewer to see an amateur video that quite possibly will suck more wind than a Hoover is a sure fire way to piss off your viewers. Bombarding them with ads just to make them wait and surf through the crap only to view that same amateur crap mentioned above will also alienate them. After all, most of us could live a full and healthy life without ever viewing little Jimmy's guitar rif video on YouTube. However, little Jimmy might just be dashed in his dreams of being a guitar hero if he can't get his video out on the internet. So charging the viewers who don't have the necessity to see the video will not work. They won't be as willing to pay for something they don't need. For that kind of pricing to work, you actually need a commodity that people want. I'm not going to pay to watch someone else's crap. If it's free for me to watch, I will gladly go for the lark. However, if I have a video that I just gotta have out there and YouTube is my place of choice to host it then charge me out the wazoo to get it up there. After all, that perceived need to gain acceptance of my internet based peers who will view my video comes pretty damn close to making hosting services for my video a commodity. Therefore flat fee pricing would work there.

    Now if YouTube has issues with excessive bandwidth and offensive things being posted then, charging a nominal fee to post the videos will help squash those problems. It will help because people will be less likely to waste thier money posting crap and then linking to it from many other sites. The viewership will not likely drop off in that respect but might actually pick up because like what was said above about quality vs. massive content, you will gain viewers looking for quality viewing and not just massive amounts of content.

  40. Funnier than anything i've seen on tv lately by nih · · Score: 1

    I am ninja!, every one a classic

    --
    I'm a rabbit startled by the headlights of life :(
  41. You've got it wrong by 16384 · · Score: 1

    The content creators, especially the original content creators are generating value to Youtube, and should be rewarded for their effort, not having to pay for the privilege. Viewers (such as me) only add to the bandwidth costs.

    1. Re:You've got it wrong by Billosaur · · Score: 1

      The content creators, especially the original content creators are generating value to Youtube, and should be rewarded for their effort, not having to pay for the privilege.

      But why do I care? If I'm YouTube, what you put up is of little consequence (save for moral, ethical, and legal complications). Bandwidth can be expanded, but servers that are constantly having to serve up these enormous files constantly are going to break down, need to be maintained to extend their lifespans, need backup in case they do fail, and must be upgraded constantly to allow users the maximum benefit. So there's equipment and manpower costs right there to keep my system running.

      It's like owning a parking garage -- I don't care what kind of car you drive, I'm simply charging you for the space to park it. I also don't care who uses your car; if you pay me monthly to have a space, anyone can drive yoru car in and out of the space as often as they like, as long as I get my money.

      --
      GetOuttaMySpace - The Anti-Social Network
    2. Re:You've got it wrong by shmlco · · Score: 1

      But as you point out, the bulk of the costs come not from the upload and storage of the file, but from the servers to download and the bandwidth needed to stream those files to the hundreds, if not thousands of people who want to see it.

      Why should not the people responsible for inflicting the majority of the costs also be the ones responsible for recouping them?

      --
      Any sect, cult, or religion will legislate its creed into law if it acquires the political power to do so.
  42. there are other ways by 6 · · Score: 1

    Why is the chant always, "ads ads ads"? If millions of people love the site then it should be possible to work out a subscription model that works. Look at livejournal for an example of a tiered functional subscription model.

    Advertising is not the only way to run a business in the modern world.

    1. Re:there are other ways by coyotecult · · Score: 1

      I dunno, because ads is always how things seem to end up? LiveJournal has ads, now, too.

  43. "Popular" front page? by Opportunist · · Score: 1

    Has anyone ever seen that frontpage? I usually only click the links sent to me.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  44. Bill Gates's videos? by Richard+W.M.+Jones · · Score: 1

    Bill Gates, who may be planning his own video hosting service

    I'm not too sure I want to see any of Bill Gates's own videos, thanks very much ...

    Rich.

    1. Re:Bill Gates's videos? by smitty97 · · Score: 1
      I'm not too sure I want to see any of Bill Gates's own videos, thanks very much ...

      Why not? Some of them are funny:
      Bill gets a pie in the face
      Windows 98 demo

      --
      mod me funny
  45. You don't know what you're advertising with by DancesWithBlowTorch · · Score: 1
    YouTube could easily alienate its users by overwhelming them with ads.
    This has in my experience been proven unfounded with Yahoo, Google, eBay and slashdot as examples. Bring on the ads.


    A previous poster already mentioned that adverts before or during the video stream are highly annoying to users. But there is another concern that even remains valid if you thought about text-based ads next to the video (if you like, the Google model): As the Economist recently pointed out, the trouble for advertisers on youtube is that you simply don't know what's in the video next to which you are advertising. Google is highly effective in putting not only the adverts in context to the search, but also the search in context to the adverts. This, of course, is because Google shows you text.

    In a Video, however, there are no keywords. Imagine you are, say, Nike. Would you like your advert being found next to a video of someone stumbling over his feet and breaking his leg in the process (YouTube is full of crap like that)? Or say you are Microsoft, and YouTube manages to put your advert next to the video of a guy rambling on about how shitty Vista will be. Worse, what if your advert shows up next to a video of someone making a racist slur?

    The real trouble with YouTube, from the advertisers point of view, is that the content comes from random people, not YouTube, and that unlike in Google's case, there is no way (yet) for a machine to match the content to the advert and the viewer.
    1. Re:You don't know what you're advertising with by Anonymous Coward · · Score: 0
  46. YouTube, cancer? by metamatic · · Score: 1

    With all due respect to YouTube, I think that MySpace is the site that's more analogous to cancer.

    --
    GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
    1. Re:YouTube, cancer? by scoser · · Score: 1

      Actually, I've always considered MySpace more of an STD, acquired by those not smart enough to use protection.

  47. Re:The best solution? Make good "commercials" by Udderdude · · Score: 1

    Commercials that don't insult the intelligence of the viewer, and are actually worth watching?

    Nahh ..

  48. Re:The best solution? Make good "commercials" by Denver_80203 · · Score: 1

    Apply directly to the forehead

  49. i have cancer by Anonymous Coward · · Score: 0

    you insensitive clod

    woohoo, it actually works this time :)

  50. If only advertisers would learn... by drunkennewfiemidget · · Score: 2, Insightful

    How many people have intentionally downloaded commercials?

    I know I have.

    If advertisers would be a little smarter about their advertising, and make their advertising work for the consumer, we wouldn't be so annoyed with commercials being crammed down our throats.

    Commercials need to be funny, or perhaps provide you with a url to print a coupon for a product (that'd work online really well), or something. If commercials weren't so bloody annoying, things would be so much better.

    Many commercials have annoyed me to the point that I boycott the product. Old Navy commercials are a great example. They're not entertaining, they're irritating. Whether its annoying jingles, bad actors, etc.

    Yes, I realise you can't please everyone, but most commercials nowadays aren't pleasing anyone.

    I, for one, know I wouldn't be bothered so much if commercials were just a little bit entertaining. I love the commercials Bell is currently running here using the two beavers. I intentionally watch those commercials when they come on because they're funny.

    If company execs stop hiring idiots to do commercials, and make good, entertaining and/or informative, actually useful commercials, and put 5-10 second clips on the beginning of youtube movies, I'd happily sit through them. Alternatively, they could do as they said, and sell space on their main page for movies put there by advertisers. If they're actually entertaining, they will get watched.

    Advertising, imnsho, isn't the evil, horrible thing, most of us make it out to be. Of course there's a limit on its obtrusiveness, but if they make good commercials targeted at the kind of people they're trying to sell to, then people wouldn't get so pissed off with them.

    Going to show a video about a car? Run a BMW commercial before it.
    Going to show a video about some guy opening a beer bottle using only a piece of paper? Show a beer commercial before it.

    Just don't make them suck.

    1. Re:If only advertisers would learn... by jmhoule314 · · Score: 1

      I agree. Nobody is going to leave youtube if they play either short or entertaining commercials. I couldnt find any statistics on how many people went to watch it but does anyone remember the 5 minute long american express commercials with Jerry Seinfeld and superman? I know I went and downloaded both of them and was very entertained. And these were more than a video with a thirty second american express commercial. The entire video was an american express commercial. Every thirty seconds they had another reason to use the card. And it has stuck in my mind. I cant say I can remember that many other commercials from that period. Also american express paid big money to advertise the commercials on tv and then in bandwidth costs to show them on their website. Im sure that they could pay youtube a lot less to do all of this now.

      heres the wikilink
      http://en.wikipedia.org/wiki/The_Adventures_of_Sei nfeld_and_Superman

  51. Already Profitable? by coldtone · · Score: 4, Insightful

    With the number of page views they get, adsense is already paying them close to 2 mill a month.

    http://plentyoffish.wordpress.com/2006/08/24/youtu be-is-already-wildly-profitable/

    1. Re:Already Profitable? by ImaNihilist · · Score: 2, Insightful

      And that's probably what it costs them per month in hardware and bandwidth ALONE, if even.

      Given the current model, YouTube will *never* be profitable. And if somehow, by magic they become profitable, the movie and television studios will instantly start pilling on the law suits. The reason no one has sued YouTube yet is because everyone's hoping they will become profitable, just so they can sue them. I wouldn't be suprised if the MPAA and major TV studios have STACKS of paperwork ready to be filed against YouTube for copyright infringement. If the day ever comes when YouTube says, "Hey, we just made our first dollar," that's the day that YouTube gets shut down because of the thousands of cease and desist orders on their doorstep.

      YouTube is a perfect example of a dot com site that will eventually go bust. It's just a matter of time.

    2. Re:Already Profitable? by Stalyn · · Score: 1

      The Grokster case sets a precedent in that if a service does not take action to remove copyrighted material it can be held liable. YouTube does remove copyrighted material when asked and also does things to hamper copyright infringement (limits videos to 10 minutes).

      Sure there is plenty of copyrighted material but YouTube has never denied a request to remove such material. Also the majority of copyrighted content comes in clip form, like a 3 minute clip of a television show. It's not far fetched to imagine that such content comes under fair use. Does a corporation really want to press YouTube into litigation for something that might be legal anyway?

      --
      The best education consists in immunizing people against systematic attempts at education. - Paul Feyerabend
    3. Re:Already Profitable? by ImaNihilist · · Score: 1

      It's borderline legal. Production studios make a big deal over EVERYTHING. The only reason they haven't raised their amry of corporate lawyers is because there's no money in it...yet.

      You better believe that if YouTube moves to a subscription model, where people are now paying YouTube to watch their movies that they are going to raise all hell. And on the flip side, that's why YouTube likely hasn't gone with a subscription model. It's lose-lose for YouTube. Eventually the debt will just become so large it will collapse into itself. Right now the only way YouTube is able to surive is by corporate investors. As soon as they get tired, YouTube will just become the next AtomFilms...or iFilm...or whatever.

  52. Filter for copyrighted and offensive video? by jayeffaar · · Score: 1

    Nevermind the ads. Copyrighted and offensive videos are pretty much all I use youtube for. If you take them away, why would I come back?

  53. Distributed Network by Overphiend · · Score: 2, Interesting

    It would seem that if bandwidth is an issue, why not offload the bandwidth to the users? Distributed networking and file sharing has been around for a while now, a service like youtube could benefit greatly with a customized version of it. Instead of having the users get the movies directly from the site, use a distributed system similar to or even built upon bittorrent.

  54. Music Videos & ads by Killshot · · Score: 1

    One thing I notice is a lot of users post their favorite music videos.
    In fact, when I get the urge to see a video from a favorite band, i search youtube rather than turn on mtv (since mtv doesnt even seem to play videos anymore)
    I think it should be easy enought for them to approach the music industry and have them pay to feature music videos on the site.

    allowing yourself to avoid paying for the bandwidth of hosting a lot of videos on your website.
    If there was a way to have embeded videos play ads, but not the ones on the youtube site.. that might be a good solution, as people who see those videos currently don't even see the youtube text ads.

  55. say goodbye to the anthropological honesty by Anonymous Coward · · Score: 0

    YouTube will have to offer advertising based on the most popular or most favorited videos. There's no sense in paying YouTube for space on a video that nobody watches, or that everybody hates. If YouTube is selective in what is sells advertising for, if it only touches on non-questionable materials that show up on the front page, say, then maybe Youtube can make money AND sustain the "black market" of free expression where (nearly) anything goes. We should hope so because the "black market" is the most interesting, honest, and human-centered space.

    Otherwise, when the marketers come to town, YouTube will have to clean up, for the obvious reason that advertisers do not want their brand linked to 12 year olds stripping to the Popcorn song. But 12 year olds like stripping to the popcorn song, and doing a whole lot of other crazy shit. The marketization of YouTube will probably kill it, just as it did for Napster.

  56. forget youtube by clambake · · Score: 2, Informative

    There are tons of smaller sites that are a hellofa lot more firendly. My favorite so far is Go Fish.

  57. I'm sure they are making money by AricC · · Score: 1

    Why is everyone saying they aren't making money? I'm pretty sure that if the cost of their servers and bandwidth is $1,000,000 they aren't going broke. I agree with some of the other posts though half of the crap on the site is just that crap. Some 16 yr old acting like a jackarse and fliming it then throwing it up on their site. What the should do is say, "Hey webmasters you want to leech our bandwidth? That will cost you 25 cents a video." That way they at least get some return on them.

  58. Is there a balance point? by meburke · · Score: 2, Interesting

    Last night on the local 1/2 hour news show there were 12.5 minutes of ads. Occasionally I tune in to a show like "CSI" or "Grey's Anatomy" and tune out about the second round of commercials. I can tolerate 2 or 3 ads, but 7-10? No Way! The content has to be exceptionally good for me to watch a commercial program these days. I think "Dancing with the Stars" may qualify, but they don't seem to have as many ads.

    I never go to Yahoo! Music to watch videos anymore either, because I have to put up with the ads first. I want to select a bunch of videos, usually the same type (Jazz, Pop, etc.), without having my entertainment interrupted by ads.

    The person who figures out the balance formula for paying for services with innocuous, acceptable advertising is going to make millions of people happy and become rich at the same time.

    --
    "The mind works quicker than you think!"
  59. LONELYGIRL15 IS A FAKE by Anonymous Coward · · Score: 1, Funny

    lol

  60. unfortunately by Anonymous Coward · · Score: 0

    My tube hasn't grown in years. :(

  61. Makin' Money by Anonymous Coward · · Score: 0

    Step 1. Build wildly popular video-on-demand service [check]
    Step 2. Have ad agencies bid to sponsor clips (with a time limit on the ad that plays before the actual clip) [not yet checked]
    Step 3. Steal underwear. [not yet checked]
    Step 5. PROFIT! [not yet checked]

  62. different than a 1999 dot com by SethJohnson · · Score: 2, Interesting

    Back in the days when you didn't need a business plan?

    YouTube is in a very different situation. The failures in the dot com gold rush were speculative web site concepts. "If we build this type of site, maybe we'll get a kabillion visitors and from there, we can do XYZ to make money from the traffic." People were investing in the possibility of these schemes being successful at attracting traffic.

    YouTube has already crossed the traffic hurdle. They've built amazing brand awareness with NO ADVERTISING. In the failed dot com model, the idea was always to build awareness through massive traditional advertising campaigns.

    If YouTube were to have its nuts removed over copyright violations (ala Napster), there are plenty of companies out there that would purchase it for the brand awareness they've already built. If Ted Turner were to get interested in pay-per-view internet video streaming, which might even have a very different offering than YouTube, buying YouTube for $100 million would be attractive because starting his own brand would require a similar investment in advertising to draw visitors.

    That's why Bertleman bought Napster after it had been disembowled.

    Seth

    1. Re:different than a 1999 dot com by carpeweb · · Score: 1

      OK, I agree that YouTube hasn't done everything that the dot-com idiots did.

      But it sure sounds speculative to build "amazing brand awareness" without a plan for what to do with it.

      Incidentally, I'm not saying that's what YouTube has done. I'm just saying that if they've done all this without a plan, then they're idiots. The OP seemed to imply that YouTube has built this amazingly huge venture only to ask, gee, how do we get revenue to pay for all this?

    2. Re:different than a 1999 dot com by SethJohnson · · Score: 1

      Yeah, I agree. I think to a large extent they are suffering from dumb luck. Now they have to sort out what to do with their windfall.

      Seth

  63. gofish.com already has a business model like this by HenryHudson · · Score: 1
    and it's really not bad. What they do is insert a 15 second advert into the flash player. you view it every 4 or 5 movies or so. I'm not sure on the frequency, but it doesn't seem to be that bad.

    They're also developing an entertainment channel. Right now it's a reality TV show type thing called "America's Dream Date". The grand prize isa trip to Paris. People are sending in some bizarre videos to win. If they keep this up, they will have an actual and viable business model...

    HH

    Sig FREUD!

  64. YouTube's not really the cancer here... by Tarlus · · Score: 1

    "...attracted the attention of influential people like Bill Gates, who may be planning his own video hosting service." Once again... WHY does Microsoft have to copy perfectly good stuff that's already out there??

    --
    /* No Comment */
  65. A few days ago... by GWBasic · · Score: 0, Offtopic

    Please excuse the juvenile toilet humor...

    A few days ago, after posting my first YouTube videos, I searched for "zit" and then "fart light". I'm sure a company that sells acne medication and anti-fart pills would love to put a banner on the results page. They could also put a small banner on the bottom of each video.

  66. tv channel by demmer · · Score: 0

    since all content that is uploaded to utube grants all rights to utube... they should use their rights and take it all and create a moderated tv channel. broadcast over sat, cable and iptv -- 24/7. everybody loves that shows where people send home videos. this is the next generation of home videos. millions submit their videos, viewable online 24/7 in low quality and in sdtv or even higher resolution on tv.

    statistics from online usage/viewage/country distribution/etc could be gathered to create localized tv programming... THIS is how u #tube can and imo will make huge amounts of money... a combination with google's interest and personalization based advertising systems extended to streaming video services would be a logical extension (to gain even more income).

    ok, maybe i am just hallucinating, but since tv and the web WILL (and already is) merge(ing) in the near future(now) anyways, why not start with the most popular online video service there is?!

    steal my ideas or hire me ;)

  67. The bigger you get, the lower infrastructers get by Guspaz · · Score: 2, Interesting

    There is one benefit of growing. The larger you get, the lower infrastructure costs get per-user. The more bandwidth you order from a single provider, the better per-megabit costs they'll give you (You can bet they'll give somebody leasing a 10 GigE connection a way better deal than someone leasing a 100mbit FastE connection). The same applies to hardware, the larger your data storage requirements, the cheaper it gets. You can start taking advantage of things like Sun's 48-drive fileserver.

    Yes, the "rule" applies less to hardware than bandwidth, but in general, the more money you've got to work with, the more you get for each dollar.

  68. Another Downside by Anonymous Coward · · Score: 0

    no one mentions infiltration by ad agencies to dilute the credibility of amateur videos.

      ex: lonelygirl15 (IloveBees kind of thingy for a future horror movie)
      ex: Political parties pretending to be "just average joe who loves america" (all parties are guilty)
      ex: inflated hits as to generate the most viewed videos to show up on the front page. (im sorry i have no proof but lately i been noticing videos which are very politically or music promoting motivated.)

      subversion of the medeum by focus groups is driving me slowly away from it.

      ALl that PR ...spin...I am so sick of it...sorry for the rumble.

  69. Lonelygirl15 is fake: Tops YouTube Ranking. by TechAddress · · Score: 1

    Lonelygirl15 is fake: Tops YouTube Ranking. Check it out: http://techaddress.wordpress.com/2006/09/09/lonely girl15-is-fake-tops-youtube-ranking/