Wednesday, August 30, 2006

Is YouTube losing its way?

Whilst most people have been talking up the success of YouTube, and the incredible number of hits it receives per day, there are those on the fringes who are starting to talk of its demise. At first I thought it was tall poppy syndrome, corporate jealousy and simply people looking to shoot down another internet success.

But then came
Paris Hilton. John Grant I think only yesterday commented on this fact and whether the internet community will accept this type of 'advertising' on its site.

The thing I'm starting to wonder about, is whether YouTube actually has a plan. If the rumours are right YouTube is losing $1 million per month, without an effective means of recouping the bandwidth costs. So they start by introducting Google Ads, and now branded channels.

It looks as though they are jumping at ideas as to how to make money.
What I can't quite fathom is why the people behind YouTube would have started up an online business, which had the clear potential to hemorage money. It smacks of the early days of the internet, when people just setup random online companies, backed with a huge marketing spend and hoped they were bought out. Can YouTube really be the same?

But then there's the Paris Hilton thing! They clearly can't be sane if they think this is how YouTube can make money. Especially if you see the user commentary - any researcher would tell you it probably isn't working.

I guess the old adage "there is no such thing as a free lunch", may well come to bite all of us who use YouTube.
Ach well it was good whilst it lasted.