YouTube, Google vs Old Media: Who Wins?

Om Malik | Friday, March 2, 2007 | 2:39 PM PT | 16 comments

YouTube, despite being blacklisted by Viacom, and badmouthed by NBC is still growing faster than a first round NFL draft pick can run 40 meters. As its traffic grows, so does its influence and reach, putting it in a catbird seat. Today, the company has signed up BBC, one of the global media majors and is going to offer three channels in partnership with them. (Marshall and Mike’s take on the latest developments.)

The New York Times reports that the company is signing up a whole bunch of small media outfits, and building up a decent arsenal of content. But is that enough, or will it need the big media’s branded content to keep growing. In other words, will it have to eat humble pie, or will the awesome Google money machine is eventually going to make the old big media change their way.

3 trackbacks so far

March 3rd, 2007
8:39 AM PT

[...] GigaOM - YouTube, Google vs Old Media: Who Wins? testing my daily delicious blog posting…and, yes…this is a good read as well! (tags: youtube google video media) [...]

April 24th, 2007
2:00 AM PT

[...] an attempt to put the players in the fight over the future of the online video that any internut can understand, I’ve literally drawn up an analogy pitting the many [...]

July 14th, 2008
7:20 PM PT

[...] The results of the new study only bolster our previous argument that YouTube is not built by big media. Liz Gannes puts it best when she says, “So maybe YouTube really is about the long tail, the little guy, and the lonely girl.” I think in the end, both parties will have to bury the hatchet and play nice with each other - just as our readers had predicted. [...]

13 comments so far

March 2nd, 2007
3:27 PM PT
B.Clinton said:

Of course the old media - content is still the “king”.

All the distribution pipe outlets for just some sexy cheeks waiting for the “old geezer” to get pick from.

March 2nd, 2007
6:03 PM PT
Chris R. said:

Since, to a large extent, big media content helped make YouTube what it is today, I think Google is going to have to eat some of that humble pie.

March 2nd, 2007
7:11 PM PT
Pankaj said:

For now, big media companies have an edge. But eventually, Youtube and “others” will win. Simply because of the flexibility and variety they provide to the consumer. Remember - YouTube has global reach. It can reach a house in SFO as well as in Bombay. Internet/Youtube is too powerful a combination for NBC etc etc.
BBC too is a global News/Media company. So they understand youtube well and hence signed a deal.

March 2nd, 2007
8:29 PM PT
Aron said:

Can you imagine a country so stupid as to block Youtube to its over a million subscribers.
Yes there are stupid govt’s like that still.

I am talking about United Arab Emirates.

Those fools need a royal butt whooping.

LOL!.

March 2nd, 2007
9:25 PM PT
Stan Miller said:

Media companys have the leverage here.

Despite YouTube’s popularity, there is still no Kleenex in the video space — just facial tissue.

YouTube is looking a lot like Napster these days. The video space is just waiting for an Apple to define the terms of the casual viewer engagement (CVE).

March 3rd, 2007
2:08 AM PT
Lars Mouritzen said:

How big a success is youTube?

It really depends on what your yardstick for success is. It is pretty hard to argue with a $1.6 billion valuation, but how does youTube stack up against a traditional media company.

Lets say youTube has 100 million individuals downloading and watching a 5 minute clip every day. That is about 8 million user-hours. (100 million x 5 minutes/ 60 minutes).

That is probably equivalent to a days worth of TV watching in Houston. (about 2 million people, watching 4 hours a day).

So for all the hype, youTube has captured the TV equivalent of Houston. Nothiing wrong with Houston, but if we were trying to measure youTube using traditional TV tools, I’m not sure it would even turn up in the ratings. This does rather suggest that there is some way to go before youTube can actually justify the current level of hype.

March 3rd, 2007
2:23 AM PT
carl said:

Yes. Content is still king. Those that OWN the content are the KINGS. What does Google OWN? WHat does Google WANT to OWN? They can make what they can of Youtube now (traffic, money) but in the long term the media giants will catch up with whatever THEY think will give THEM the biggest ROI. Sure G can make a killing on Youtube to see there own RIO in the meantime, but they’ve always made a big deal about not owning.

March 3rd, 2007
5:13 AM PT
Michael Stone said:

THIS IS AN EASY ONE!

If old media capitulates and gives YouTube their libraries for crumbs, and they don’t become primary players in the Video business, then they lose.

If they do become primary players, as Viacom is trying to do with iFilms.com, then they can also work with YouTube and still be winners.

Old Media missed the Search revolution, and therefore, lost tens of billions in market capitalization. Time Warner could be a major player now if they hadn’t missed this.

They all missed the contextual ad revolution - nearly every web page on the internet has contextual links on them and billions of market value has been created.

If they miss the coming Video revolution and simply pick up a few crumbs from Google and Yahoo in the form of royalty payments, then YouTube will be worth $20 billion in 5 years and Viacom will have collected a few “tens of millions” over that period. It’s simple, in my eyes, to see how this will play out.

March 3rd, 2007
9:05 AM PT
victor said:

This getting very intresting with respect to content owners and the affirmation of content being King.

March 3rd, 2007
9:55 AM PT
Randy Smythe said:

I agree with Michael Stone’s comments. What can I add?

Old Media (Viacom, NBC) is using what little leverage they have left to see if they can force YouTube into a better deal. They all would prefer to be calling the shots and if YouTube wasn’t owned by Google then that approach might work.

Unfortunately Google has $11 Billion in cash on its balance sheet. You Tube can concentrate on the Long-Tail for now. The Old-Media Farts will soon have to fall in line.

March 4th, 2007
12:57 AM PT
Moksh Juneja said:

There will be people reading papers and there will people who would be using YouTube… both will be influencing, both will create enough opportunities

March 4th, 2007
6:40 AM PT
Karthik Chandramouli said:

“40 meters” ???

Om, seriously, don’t you know that we Americans are proudly not part of the metric system?

It’s a 40-yard dash:

(link)

March 5th, 2007
5:01 PM PT

I think New Media Technology companies will have to buy Content Companies to overcome this challenge. I discuss my thoughts here: (link) .

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