Google is betting that YouTube isn’t going away anytime soon, despite some who maintain that it will soon be sued out of existence. Of course, the deals that YouTube made today with CBS, Vivendi’s Music Group and Sony BMG, in addition to last month’s Warner Music Deal will increase their chances at avoiding litigation considerably.
In buying the not-yet-profitable YouTube, Google has given them time to put down solid roots, rather than having to jump at any advertising deal possible to avoid cutting off the bandwidth. YouTube has given Google excitement, passionate users and lots more real estate for their advertising. I don’t care what anyone says, even if corporate america is too stupid to take advantage of social advertising, there is a plethora of small-time advertisers chomping at the bit to reach this audience.
Earlier today Jeremiah was looking for answers as to how Yahoo might react. His position that Yahoo might choose to approach content creation and avoid being just another uploader (ie copy of YouTube) is spot on. Vimeo, Blip.tv (my fav), VideoEgg, Revver, etc. are all good purchase options, though they may want to redesign Jumpcut to that end.
With the emergence of broadband and with the stampede towards social sites, who *wouldn’t* want to have a piece of YouTube’s action. As I’ve said before, YouTube is so much like an early Google. The synergy here is beautiful.