October 10, 2006
So Google buys Youtube. Is Mark Cuban right - are they crazy? Buying a competitive service to their own Google Video, opening themselves up possible lawsuits, technically offering for free via Youtube content that they sell on Google Video?
But I imagine this is all part of a larger plan. Whilst it feels like Bubble 2.0 hysteria, Google have long expressed the desire to roll their advertising model out across other channels - the above comes from their analysts day presentation earlier this year - TV is still the biggest prize in the advertising market.
In order to control TV advertising, they need to be able to provide search for TV content. Having already invested in ways to search the closed captions, does Youtube give them a community of people who are tagging film content, enabling them to leverage social search to help them achieve their goal?
Footnote: See here for Youtube founders' take on the whole thing. They seem pretty pleased...
Addtional thought: How much of the Youtube purchase price was brand value?