Google paid $1.65 billion for what, as far as I can tell, is largely a collection of mediocre home-made video clips complete with comments from the biggest concentration of idiots on the internet.
Why? How does YouTube make money anyway? The Wikipedia page on YouTube isn’t much help:
So they’re not planning to charge people to view videos. Makes sense, as nobody would pay to look at the site, surely?
OK, so there is some income from advertising. But how? The few occasions I have clicked on a YouTube video, I haven’t noticed any ads on the site – OK, on close inspection they are there, but they’re certainly not conspicuous and I don’t know anyone that has ever clicked on one. Sooner or later, surely the advertisers will realise that nobody clicks the ads? Plus, you can embed YouTube videos on other sites, for free, so plenty of viewers aren’t even seeing the surrounding ads in the first place!
Recently I’ve seen billboards (with the amazingly crap slogan “Pee your pants”) advertising “YouTube on your mobile phone” through Vodafone. I assume they are pursuing similar schemes worldwide. So what, do they think people are going to pay to see mediocre home-made video clips complete with comments from the biggest concentration of idiots on the internet on a tiny cellphone screen?
I really DO NOT GET IT. Why are YouTube’s founders multi-millionaires when nobody is paying to use their site?