Bubbilicious!
One day we’ll all look back on this bubble and laugh:
YouTube is rumored to have quietly raised another $25 million in venture capital after raising two rounds totaling $11.5 million from Sequoia Capital. The hit video-sharing site might need it: YouTube’s bandwidth fees are said to be approaching $1 million per month.
We don’t get it. YouTube is Napster for video. While they have slyly introduced some advertising onto the site, this hardly constitutes any long-term business model. Unless that business model is “we’re going to get bought by Fox.” Welcome to the bubble 2.0…
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Doesn’t it really need public investor demand to be a bubble? It just sounds like a rash of unwise venture capital decisions - a tempest in a teapot compared to the late 90s, the current housing bubble, or the 80s housing bubble. When I think ‘bubble’ I think crazy stupid IPOs and 60,000 dollar conference tables. Then again, a) arguing semantics about what a bubble is or isn’t is probably pointless and b) I’m no finance expert. Either way, I feel like when this “bubble” bursts, no one is going to get hurt except for a few hundred capitalists and engineers in the Yay Area.
Posted by thedaniel on 05/02 at 12:40 PMDaniel is right. The term “bubble” is misused here.
All YouTube is doing is procuring investment capital, like any other startup. Securing finacial capital from the people with big pockets doesn’t necessarily indicate a bubble.
Often, startup companies can go on for many years in the red, before they turn into the black. Youtube is nothing special in this regard.
With the unbelievable growth the site enjoys now, it probably has a business model that’s more complicated than Ori might come up with. There are a ton of ways for YouTube to make money with their amazing subscriber base.
YouTube is a lot more than napster on video.Posted by on 06/10 at 05:14 PM
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