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Summary:

AOL just announced Uncut Video, their own version of online video sharing ala You Tube. (Read Mashable’s take on it.) Niall Kennedy says that Yahoo is working on something similar as well, and said so in its analyst day meeting with the financial analysts. Niall says […]

AOL just announced Uncut Video, their own version of online video sharing ala You Tube. (Read Mashable’s take on it.) Niall Kennedy says that Yahoo is working on something similar as well, and said so in its analyst day meeting with the financial analysts. Niall says that “The new video site includes videos from around the web and a few from Yahoo! users as well.”

With Google Video and MySpace Video already up and running, I wonder what are the exits for companies like You Tube and other such services? Will someone buy YouTube for its traffic? What are your thoughts on this?

  1. YouTube is definitely going down the tube, IMO… They just lost two potential aqcuirers (Yahoo and AOL) … I guess the big guys like NewsCorp and Viacom are still left, but I worry that legal issues will keep them from moving in.

    With YouTube running thin on the funding vs. operating cost ratio, I don’t see them lasting much longer than 12 months if they can’t come up with viable solution to bring in revenue or go through an M&A.

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  2. After reading about this clone from AOL (the umpteenth one in the past few weeks), some animal analogies come to mind (please forgive me):

    Microsoft lumbering Elephant
    Apple heel-snapping Hyena
    Google fat Lion with yellowing teeth
    Yahoo Gorilla in need of evolution

    AOL Monkey

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  3. Man, YouTube is just dumb business… They took too much VC money so they need to sell for a really high price, the technology is too easy to copy, they have no business model yet, and they grew by expoiting copyrighted material. All they did was give something great for free and got money to keep growing.

    The only thing they can do is roll out this great new business model they say they are working on and hope they can become profitable in time.

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  4. Well YouTube was inspired by Flickr. Wonder why Yahoo was not able to clone Flickr or it was too late..

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  5. another interesting player is videoegg, check out their generous affiliate program here

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  6. YouTube and Flickr? Flickr was innovative, YouTube isn’t. Flickr pioneered a bunch of new things, and is still much better than YouTube. Yahoo can easily clone YouTube, but they couldn’t clone Flickr because the thinking behind it was much better. So they wanted to get the people. What does the YouTube team have? Scaling expertise? Expertise in throwing money around? Flickr had that 2.0 mojo. YouTube has a business model that’s pretty much doomed. Nothing to acquire there. Plus Flickr didn’t have millions of VC dollars hanging around their neck.

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  7. Yes Peter got it right, Flickr was a people/tech buy. Yahoo basically bought Web 2.0, at least some of the main people that started the trends. Youtube would just be a plain eyeball buy. The big guys already know how to scale.

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  8. Youtube has got a distinct advantage though – the user base. Online users dont surf 10 different video sites for a particular video…youtube has got this user externality where many more videos are uploaded on youtube than any other (i mean yahoo video search has existed for a while too). In my opinion yahoo or AOL made the blunder by not buying youtube and its legion of users, though they still have the option to do it in the future if their video sites do not take off.

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  9. From a buyer’s perspective, what’s cheaper? Paying for YouTube’s fickle traffic base and easily replicated technology, or developing it in house and marketing it via your own extensive properties?

    I would think that the math would point to a buyer from the trad. media world looking to expand a weak online presence; can’t see any of the online giants bagging it unless it goes for dirt cheap.

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  10. YouTube will prevail.

    Interest in YouTube doesn’t have to come from one of the existing portals, it can come from anywhere. Disney. General Electric. Viacom. You name it – these are all players who would love the kind of global traffic that YouTube generates.
    My guess is, though, that News Corp. will ultimately be the one to acquire – as they seem to be more visionary than the others.
    But with Jobs on the Board of Disney now, who knows?

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