YouTube is a video sharing website that relies on a huge social network. Indeed the video contents on the site come directly from its users who want to share their videos and upload them on the YouTube server. Besides its interesting strategic positioning in terms of using mass participation so as to increase the contents, YouTube is a key indicator to understand what’s going on over the Internet nowadays.
The company was founded in February 2005 by three employees from Paypal and was sold for 1.65 billion to Google in October 2006, that means that in less that two years a company without tangible assets can be seen as important enough so as to be bought by number one Internet company. The price Google bought YouTube worth so much more than what the company actually is : 67 employees, numerous computers and servers. Nowadays the value of an enterprise doesn’t only refer to its tangible assets but also to its strategic positioning. Success stories within the Net economy such as Google, Ebay and YouTube can be explained by the same phenomenon: these companies were the first one to offer something new and useful on the Net. Once they are the first ones in their field there’s no way to overcome them, except if you have a new revolutionary idea.
Insofar as YouTube became the leading site for providing online video content, Google understood the importance to own such a company because it probably stay the first one in that field except if a new company offers new functionalities. Moreover Youtube users represent a huge amount of people to whom Google could provide profitable services.
The Following Video was the most viewed one ever on Youtube with .... more than 39 million watchers...Ok this is kind of funny but probably not THAT hilarious.
http://www.youtube.com/watch?v=dMH0bHeiRNg
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