Tuesday, December 05, 2006

Details on the gootube deal...

Long, but interesting read. Posted by anonymous source, but it definately points out a valid strategy.

First, google buys youtube.

500 mil of purchase goes to settling lawsuits (50m per media giant).
Within the 50 mil, google requires 2 things:
1. Media giants look the other way for 6 months while google fixes a copyright infringment scheme for youtube - this includes a middleground so that youtube can still offer copyright material (since that IS the real reason why video sites grow so quickly).
2. Media giants create lawsuits for youtube competitors (and by now, this has already taken place)

Causes:
Cause from #1: Youtube flurishes for another 6 months (paraphrase: "Every day that youtube can avoid copyrights is another day youtube grows")
Cause from #2: Youtube competitors will not grow in popularity, nor will they recieve venture capital.

End result:
Youtube will grow, all else will fail. Google is happy. Youtube FTW.

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