One of the biggest internet phenomenons of the year 2006 was YouTube that was acquired by Google for $1.65 billion. You Tube continues to expand more and more on current Alexa figures as it is in the list of Internet’s top 10 sites on the Web that fetch most traffic. The traffic has grown swiftly from a few thousand to amazingly 30 million visitors in a year. The top-notch noteworthy thing is that none of the YouTube’s top competitors has been even able to get into the list of top 100. Now, the question arises ‘Can YouTube keep its tight grip?
Two main reasons that account for YouTube’s success:
•Firstly, the company offers the users to upload the videos with utmost ease and they possess a video software that doesn’t need any software downloads.
•Secondly, the company’s contentious decision of not to prescreen videos before they were posted.
What do the company’s competitors think?
Los Angeles based video sharing firm Revver disclosed that two out of its three co-founders including Rob Maigret, Revver’s chief technology officer, and David Tenzer, head of media partnerships, have left the company. Another company Guba based in San Francisco witnessed the resignation of its three executives lately including the CEO of the company McInerney.
Revver, co-founder Oliver Luckett cited:
YouTube has won round one. It has absorbed everything.
Thomas McInerney, the former CEO of Guba said:
I think we can all acknowledge that YouTube has won the big prize
Josh Martin, an analyst at Yankee Group Research said:
I’d be very surprised if some of these companies don’t go out of business this year. Too many of (them) are distributing the same kind of content.
Well, Time Magazine has recently nominated YouTube as the ‘Invention of the year‘. YouTube has a tight grip on the video-sharing market that is forcing many contenders to change business models to stay away from going nose to nose with the YouTube juggernaut. Well, sites such as Luckett and Maigret think of producing online videos. Sources say that Revver will concentrate on improving the core businesses i.e. video sharing and ad distribution rather than big studio deals. Luckett anticipated that YouTube won’t be able to hold its position for a very long time. Time will tell whether the Luckett’s anticipation turn out to be true or not.
Via: Cnet news
