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Case study on you tube

Case study on you tube

Published in: Business, Technology
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  • 1. Case Study on ? By: Sunil Kumar August 1, 2007
  • 2. Youtube- Video sharing site.
    • Founded by
      • Ched Hurley (Left)
      • Steve Chen (middle)
      • Jawed Karim (right)
  • 3. Table of content
    • Dates and figures.
    • Facts about youtube.
    • Factors which made youtube a hit.
    • Launch and Marketing strategy.
    • Exit analysis.
  • 4. Dates and Figures.
    • Founded on 14 th February, 2005.
    • Launched its product in May 2005.
    • Got their first funding of $3.5mn from sucoia capital in October 2005.
    • Got the second phase of funding of $8mn from sucoia capital in April 2006.
    • Acquired by google in $1.65bn in October 2006.
  • 5. Facts about Youtube..
    • Fastest growing website in internet industry.
    • On average 100mn videos streamed per day.
    • 65,000 videos are uploaded daily.
    • You tube has 45 terabytes = 45,000 GB of videos
    • More then 13 million new users every month.
    • An average user spends 30 min on you tube
  • 6. Facts about Youtube.. (contd)
    • 58% of internet videos are watched on you tube.
    • 4 th most visited site of the world.
    • Accounts for 10% of total internet traffic.
    • $1mn per month is the cost of bandwidth needs to support such a heavy traffic.
    • The total time people spent watching Youtube since it started till it was acquired was 9,305 years.
  • 7. Key Issues in video sharing.
    • Lack of viable storage platform
    • Mediocre watching experience.
    • Fragmented viewer experience.
    • Youtube - Right technology at the right time.
      • Videos are encoded in flash format.
      • Tagging of videos made it more searchable.
  • 8. What are the other factors which made the company a big hit?
  • 9.
    • 1.) Widget Marketing:
        • You tube allowed user to embed video on their own webpage or blog.
        • It was popular in social networking sites like MySpace which indirectly increased the page rank of videos in google search.
    • 2.) Distribution of popular content:
        • Popular television clips and hard to find video clips.
        • Saturday Night Live
        • User uploaded copyright content.
        • No registration required and no player need to download.
  • 10.
    • 3.) Right technology for the desired user experience:
        • Videos encoded in flash format.
    • 4.) Environmental factors:
        • Bandwidth become cheaper, faster and ubiquitous.
        • Online social networks like myspace had already attained critical mass.
        • Video producing technology become more cheaper e.g digital camera, mobile phone with camera.
        • People seeking online entertainment source.
        • Platform side technology become cheaper.
  • 11. Launch and Marketing strategy.
    • Launched in May 2005:
        • Launched as video clone of HotOrNot.com
        • Targeted mainly young adult market.
    • Revamped in June 2006:
        • Creating a general purpose video sharing site.
        • Increasing number of views by offering related content.
        • Interaction between users.
        • Offering a video player which could embed on a site like myspace.
  • 12.
    • Promotional tactics which proved ineffective:
        • Advertisement on craiglist.com
        • Asked women model to upload their videos.
    • Tactics which actually helped to increase the user base:
        • Myspace :Although it blocked youtube once but had to allow it later.
        • Tsunami footage videos bought the largest traffic spikes.
        • Distributed i-pod nano for few months to attract users which results more then a million views per day.
        • Search engine optimization.
  • 13. Exit Analysis
    • You tube was acquired by Google in $1.6bn.
    • Sequoia, who invested $11.5mn in two phases has 30% stake in you tube which worth around $495mn.
    • ROI = 43x
    • Ched Harley (CEO) got $345.6mn
    • Steve Chen (CTO) got $326.2mn
    • Jawed Karim got $64.6mn
  • 14.
    • Was $1.6bn acquisition justified?
  • 15. You tube potential revenue.
  • 16. You tube is wildly profitable.
    • $7.5mn/month revenue from ads.
    • = Nearly $100mn/year
    • Could go up to $400mn/year
    • Next target?
    • $75bn tv adv industry.
  • 17. What else did youtube brings to google other then business?
      • Issues
    • Copyright content distribution issue.
    • Viacom sued google for 1bn
    • Actions taken
    • Google has almost developed copyright content filtering system
    • Google removes the content after the owner claims for copyrighted content.
  • 18.
    • Thank you

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