1. CASE STUDY: Google and YouTube Together: Pass the Popcorn While This Ad Plays (Chapter 10: Online Content and Media)
Group F
Dale Earle MGS
Kwaku Morgan-Arhin / 26 / 2010
Latoya Nelson Dr. Melworm

2. FIRST VIDEO ON YOUTUBE?!
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

3. THE BEGINNING OF GOOGLE => YOUTUBE
YouTube launched on Valentine’s Day 2005; website didn’t officially hit the masses with its first video upload until April 23 of that year
Google purchased it a year and a half later (November 2006) for $1.65 billion
Google’s stock price hit $500 months later and a little over $700 in November of the following year
The 2008 recession hit the YouTube / Google collaboration hard resulting in a rumored $250 million loss for that fiscal year
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

4. WAS YOUTUBE A WORTHWHILE INVESTMENT?
YouTube’s tendency to keep secret their total amount of videos makes skeptics wonder if the total cost of site maintenance makes profits impossible
Estimates show it can be anywhere from 84 to 142 million videos, exceeding 1 petabyte of hard drive space
It draws over 120 million visitors monthly, but the average stay is about 5 minutes as opposed to sites like Yahoo! where its 150 million visitors each stay about a hour or so
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

5. HOW GOOGLE JUSTIFIES YOUTUBE PURCHASE
Google plans to turn YouTube, the Web’s largest repository of video, into the largest advertising platform in history
The increase of quality content so it’s on par with the amount of user-created content will increase profit after advertising next to popular videos begins to make sense for sponsors
After ways are found to collaborate with media conglomerates so permission to upload quality content is obstacle-free, more viewers gradually flock over
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

6. WAYS YOUTUBE / GOOGLE ARE WORKING WITH COPYRIGHT OWNERS
They restrict advertising. They only advertise on those pages that copyright owners have given permission.
Google developed a software called YouTube Video Identification. It allows copyright owners to scan the YouTube database for their own copyrighted material.
They are changing their approach to a "Quality Video Content". High-Quality content owners, like CBS, HBO, ESPN, etc., are allowed to establish their own "exclusive channel" on YouTube.
YouTube cut deals with companies like Sony, the BBC, Starz, etc., to provide full-length movies and TV shows for free
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

7. YOUTUBE / GOOGLE NOW!
They can not be the Internet's single source for all world's video.
They need lots of powerful players in order to make a profit and survive.
YouTube has developed a "sponsored videos" program. They select amateur videos and offer advertisers text ads to be displayed on the lower portion of the video screen.
The advertisers bid for keywords and Google uses search tools to match the keywords with the proper videos.
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

8. PROBLEMS WITH THE NEW ADVERTISING
The connection between the video and the ad may not be clear.
Chances that the advertisers' ads will show up on an embarrassing video.
YouTube users still expect the videos to  be free and without ads. Therefore their response rate to the ads are very low.
The ads are killing YouTube's audience.
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”

9. QUESTIONS???
CASE: “Google and YouTube Together: Pass the Popcorn While This Ad Plays”