Dates and Figures  Founded on 14th 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.

1. Youtube- Video sharing site.
https://bit.ly/3zZiuWK
Founded by
• Ched Hurley (Left)
• Steve Chen (middle)
• Jawed Karim (right)

2. Table of content
• Dates and figures.
• Facts about youtube.
• Factors which made youtube a hit.
• Launch and Marketing strategy.
• Exit analysis.
https://bit.ly/3zZiuWK

3. Dates and Figures.
• Founded on 14th
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.

4. 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
https://bit.ly/3zZiuWK

5. Facts about Youtube..(contd)
• 58% of internet videos are watched on you tube.
• 4th
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.

6. 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.
https://bit.ly/3z
ZiuWK

7. What are the other factors which
made the company a big hit?
https://bit.ly/3zZiuWK

8. 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 copyrightcontent.
•No registration required and no player need to
download.

9. 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 hadalready
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.

10. 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.

11. 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.

12. 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

13. Every Video See The Beautiful Relaxing Music
https://bit.ly/3zZiuWK
Was $1.6bn acquisition justified?
https://bit.ly/3zZiuWK

14. You tube potential revenue.

15. 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.

16. 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.

17. Thank you