YouTube! Google take over!?

The guys who used to run YouTube made no money out of the venture so why did Google buy it for so many millons of pounds? How are they going to make money out of it?

Furthermore now that are going to prevent people from posting videos that infringe copyright laws will that not prevent more people from posting clips on the site, and thus lead to less users. I really don't understand how Google are going to make money from buying YouTube?

Google took over YouTube because it is the market leader in the fastest growing part of the internet. As broadband speeds get faster and faster more and more people are going to watch video on the net. 90% plus of the market will go to YouTube to do it. Google tried to compete but got nowhere, so they bought the company. It is worth pointing out that they didn't pay out cash. Google bought YouTube for shares & the owners have signed a contract agreeing that they're not going to sell those shares for a few years. Google may have paid too much, but they paid too much with very overvalued Google stock.

The restrictions on posting video clips without copyright were happening anyway - they have nothing to do with the takeover. The current approach is illegal & the entertainment industry have made it clear they will start bringing lawsuits against anyone that posts material without copyright.

Google will make money out of You Tube in two ways. The number of people visiting the site is already very large and will be even bigger in the next few years. Google will link its various services to YouTube and drive even more people over there. There are a handful of sites on the net that get more than 100 million people visiting each month & Google/YouTube is one of them. Also, the basic service will still be free but I think you'll see the introduction of paid add-on services. Google could easily offer a movie download service for example and split the revenue with the film studios. Google will end up offering a whole range of "social networking" services through YouTube and could even end up using it to compete with MySpace.

Advertising, stupid, advertising!!

Well apparently it is advertising but who can work that one out? Do people really follow internet advertisements to that scale?

I suspect Google saw the potential in the company and will develop it far beyond what it is now. Hence the high price. But why didn't they just start a new one? The name, of course. It's really hard to break into a new company with an idea that is similar to an existing one - such as iTunes. Lots of copies, none of them as global as the original. Google will have a plan and no, they will never be able to police the site.

yea advertising..its all a bunch of advertising. like myspace..they make half their money by advertising..

by selling your information to advertisers who are willing to pay money to try and get you to spend LOTS of money on their products!!

dunno but youtube rox

google can catch with youtube cause youtube aleady has a massive internatoinal audience, and many is paying catch up by copying unless they can come up better idea like allowed all user more than 10min video then we shall some big changes. good aint making money form youtube caus youtube aint itself ain't making much either.

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