YouTube makes its power play

If you are Revver or Metacafe, then it has to be the happiest day of your tiny life. YouTube, the 800-pound gorilla just validated your business model by deciding to pay their creators, a cut of the advertising action.

If you are Revver or Metacafe, it is also the worst day of your life, because now a deep pocketed incumbent is going to play havoc with your business model, and hope to run you out of town.

Chad Hurley might have made this announcement in Davos, but the reverberations will be felt around the online video community.

YouTube-Google are using their massive cash reserves and their seemingly unstoppable ad-machine to take the online video sector by the scruff, and giving it a vigorous shake, in hopes that some of the weaker ones would suffer a coronary.

Little guys now have to get really creative and figure out a way to get around the giant Google ATM and beat The Goobe.

Of course, Goobe is not the only one attempting this pay-to-play model. C/Net’s Project Spotlight is another twist on paying the creators.

PS: YouTube is the latest company to join the growing ranks of the iCompanies, enterprises that include their community into their economic ecosystem.


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