Here comes the news of the week, according to financial times YouTube joined hands with BBC. A new beginning for on-line video giant. Internet TV in its real sense is now about to be created. There are many sites that deliver high quality Video content, but none of them really matches popularity and flexibility of YouTube. For perspective YouTube has monthly audience of more than 70millions and you can search amongst numerous key words and categorize in whatever way you want!
Leaving aside the issues that YouTube is currently facing, this news thrilled me for one personal reason. In Jan’06, together with my friends Max, Omar (Texas, USA), Per Inge (Norway), Bo (USA), and Gord (Canada) we had developed an idea of international on-line broadcasting of traditional media and also tabled the idea to VCs. We reached semifinals but later decided to prioritize other things and move on to other walks of life but this idea was still pretty much alive somewhere in my heart.
I am happy to see this news, as little as it may sound right now though, as it is going to revolutionize the world. If I can envision Google’s master plan for YouTube, a “personalized” InternetTV is about to take birth which people can tune to anytime, anywhere in the world. Owing to rising popularity of HDTV (that allows streamloading internet), rising speed of broadband, and better technology enabled PDAs/Mobile phones, we are now spending much more time online than off-line. There is no scarcity of content as more creativity and content exist than traditional TV currently can handle.
Let’s talk about money. Just combine the above funfacts and fast forward time by only 2 to 5 years. This will create a unique industry. For perspective, Traditional TV still receives lion’s share of advertising dollars, take a guess of advertising dollars? In the United States alone in 2005, spending on advertising reached $144.32 billion, reported TNS Media Intelligence. That same year, according to a report titled Global Entertainment and Media Outlook: 2006-2010 issued by global accounting firm PriceWaterhouseCoopers, worldwide advertising spending was $385 billion. The accounting firm’s report projected that worldwide ad spending would exceed half-a-trillion dollars by 2010.
Welcome aboard YouTube to money making 21st century!
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