Ok, this is a post from the network: http://topics.nytimes.com/top/news/business/companies/youtube/index.html. It talked the ways Youtube tried to make profits, and let’s see how YouTube acts in future.
YouTube is far and away the most popular destination on the Internet for viewing video, most of which has been posted by users. Nearly two-thirds of all video views in the United States occur on YouTube, according to the measurement firm Nielsen. The site had more than 90 million visitors, 10 times as many as the next biggest site, in March 2009.
Still, YouTube’s owner, Google, which paid $1.65 billion for the site in October 2006, has struggled to make it profitable.
YouTube was started by three 20-somethings after a late-night dinner party. Its success was based on how easy its software made it for ordinary computer users to upload videos, and the network effect that meant that the more material that was uploaded, the more attractive the site became for viewers, and therefore for others seeking to share content.
It was a formula that drew heavy traffic, but produced little revenue. Critics also said that much of YouTube’s material was posted in violation of copyright restrictions. And even before its purchase YouTube had struck accords to license content from two of the four major music conglomerates — the Universal Music Group and Sony BMG Music Entertainment — and the CBS television network in exchange for a percentage of YouTube’s advertising revenue.
But not all mainstream entertainment companies wanted to follow suit. In 2007, Viacom, the parent company of MTV, Nickelodeon and Comedy Central, filed a wide-ranging lawsuit against Google, accusing it of “massive copyright infringement.” Viacom said it was seeking more than $1 billion in damages and an injunction prohibiting Google and YouTube from committing further infringement.
Citing the immense amount that Google paid for YouTube, the complaint said that “YouTube deliberately built up a library of infringing works to draw traffic to the YouTube site, enabling it to gain a commanding market share, earn significant revenues and increase its enterprise value.” The complaint was filed in United States District Court in New York. Google responded that copyright law shields it from liability for clips posted by its users.
More recently, Google has been trying to work with major media companies to find a way they could both profit from YouTube’s ubiquity. In April 2009, YouTube announced that it had signed deals with Hollywood studios, including Sony, Lion’s Gate, M.G.M. and others, to showcase thousands of TV episodes and hundreds of movies on its Web site. And Google said it might eventually bring another innovation to the site: payment for some premium content.
To attract more advertising, YouTube is striving to add more professionally produced video.
In December 2010, the video site was said to be in talks to buy Next New Networks, a Web video production company based in New York. The acquisition would be YouTube’s first major foray into producing original content, and demonstrates how intently it is focused on offering professional videos rather than just short clips by amateurs.
The pacts with media companies allow YouTube to place ads before, during and alongside the videos and split the revenue with its partners. (The site does not include ads alongside most videos created and uploaded by amateurs, which make up an overwhelming majority of the content on YouTube.)
With the new section, the company will be competing directly with the growing array of Web sites that serve up full-length TV shows and movies free (with advertisements) on the Internet. The next biggest site – Hulu, a joint venture of NBC Universal and the News Corporation – is perceived by YouTube to be a competitive threat. Hulu, which features NBC and Fox TV shows among others, has grown rapidly in the past year, drawing dozens of clients to its advertiser-friendly atmosphere. Some TV shows, like NBC’s “The Office,” typically draw more than a million online viewers each week.
BTW, if you want to download and convert YouTube videos to play on portable players, please try Amac YouTube Studio.