Mark Cuban recently reposted an interesting “insider” tidbit from the Google + Youtube deal:
Since everyone was reaching into Google’s wallet, the big G wants to make sure the Youtube purchase was a wise one. Youtube’s value is predicated on it’s traffic and market leadership which Google needs to keep. If they simply agreed to remove all unauthorized content and saddle the user experience with ads Youtube would quickly be a skeleton of its prior self. Users would quickly move to competing sites. The media companies had 50 million reasons to want to help. Google needed a two pronged strategy which you see unfolding now.
To sum it all up, they claim that Google set aside a large portion of the $1.65 Billion to “pay off” the big media companies in a secret escrow account. In exchange, they agreed to drop all pending lawsuits to prevent the type of demise predicted here on BBB (and several other places). It will be interesting to see how people react at such an accusation. Since lawsuits are public record, it should be relatively simple to show companies suing much smaller video competitors for content which is already on Youtube’s site.
We’ll update you, precious readers, as this story develops.
You may be missing a bigger picture. The number of people who are recorded as having watched a YouTube video are bogus.
Many, many member make multiple accounts, then use a common reloader program available for the Firefox browser, and a simple proxy account, and the vids reload day and night for days.
Many users who have only been members for a month have over 30,000 video’s recorded as having been viewed or more.
Additionally, abusers in the know can also switch to a “Musician” account that, for some reason, YouTube allows the user to hide his number of video views.
One user in particular, lamo1234, had over a million video views on his account, yet has only been a member for 6 months. Once the story on him broke, he changed to a musicians account, to hide his tracks.
Bottom line, YouTube view hit numbers are bogus.
“Moneyhouse” and “LittleLoca” have already been exposed as abusers, yet YouTube still allows them to inflate their viewhit numbers via multiple accounts and the Firefox reloader.
YouTube is aware of this problem since before the Google sale, yet continues to refuse to do anything to mitigate it.
See the expose on Mashable Blog:
http://mashable.com/2006/10/16/gaming-youtube-for-fun-and-profit/
Next entry: Surprise, Surprise: YouTube Avoids Another Fight
Previous entry: Comcast Getting into the IPTV Game