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Emerging Technologies

YouTube obsession cont..

By Brij ⋅ October 15, 2006 ⋅

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There is no doubt that Google is the smartest company around and most probably they will retain that title for much of this century (and boy we are in 2006, 94 more years to go !). With every business move and every acquisition they are not only maintaining their wide lead but also reducing number of companies who can potentially do business with them as equals.

Take this YouTube example. I am sure they must have worked out all the legal issues they will be running into. For them getting into some type of mother-of-all copyright battle is critical to their goal of “providing access to all the world’s information”.

Even after including legal cost (which can run into billions) Google will come out cheap with this acquisition. They effectively managed to get MySpace equivalent eyeball and better video platform at a much less price. Momentum of YouTube will show in 3 or 4 years that Google paid lot less than what News Corp paid for MySpace.

One video serving platform built around social networking community and serving global audience, combined with Google’s scaling capacity. This is big and a potentially huge slice in the media company revenue base.

Specially for emerging market, YouTube can prove to be a killer app for broadband adoption. Where else can you get highly customized 24/7 Chitrahaar.