What is in store for YouTube?

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YouTube happens to be one of the most popular sites on the net, yet they haven’t figured out how to make money and no one seems to be interested in purchasing them. With a burn rate of over $1 million per month and no real signs of revenue I can see why not that many parties would be interested. Throw in the potential copyright lawsuit nightmares and they have no chance. YouTube seems to be digging itself a grave, but do they have a way out?
###One Lazy Sunday
Earlier this year, the NBC hit “Lazy Sunday” blew up on YouTube, the video received over 5 million views. NBC actually sent a cease and desist to YouTube over “Lazy Sunday” most likely because they didn’t realize the power of viral marketing. Now NBC has a deal lined up with YouTube to populate the site with promotional clips and they are also running a contest on YouTube for “The Office.” Despite it being a potential gold mine in the right hands, NBC (or any television network) probably is not best fitted to acquire YouTube.
###A potential candidate
NewsCorp could potentially be a good fit for YouTube because of the synergy with MySpace. Those two companies under the same roof could pack a serious punch. NewsCorp is starting to figure out how to monetize MySpace and they could probably turn it around for YouTube. Even though NewsCorp owns FOX they could still allow other networks to advertise. Plus it would be a great platform to distribute FOX’s content.
###YouTube speaks for itself
Maybe YouTube is just better off being independent. At least that’s what founder Chad Hurley recently hinted at when he said that they are not interested in being acquired. Of course, YouTube would sell if there was a decent offer on the table but how much would this offer have to be?
###The big gamble
Acquiring YouTube would be a big gamble for anyone. There are a few
potential fits but until YouTube shows that their popularity can be
turned into a business I don’t expect anything to happen. With 150+
video sharing sites, the space is crowded and the companies are going to start dropping like flies. Once that happens, I think we will start
seeing some major moves. It’s then that we’ll have a better grasp on the true value of all these video sharing companies.

Cameron Olthuis

Cameron Olthuis

Cameron Olthuis

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