The latest sensation is Google is buying Youtube for $1.6 billion. It's a wise move from Youtube point of view - much of the video clips in Youtube are subjected to copyright issues. Now that means, Youtube has now Google's limitless bandwidth, deep pockets and tough attitude to deal with copyright issues! It's a win-win situation for Youtube.
What it means for Google? Mark Cuban spoke to Reuters on Sept. 28th, 2006. His opinion is it's a mistake to buy Youtube, for the potential lawsuits looming on the company. Since, right now you tube does not have a deep pocket, no one is suing it. Once it gets money, people will start suing it from all corners.
If Youtube then removes the copyrighted materials what all will be left there to watch? Yes, it's the question precisely being asked. I go to Youtube to watch latest music videos, cricket match recordings, football match recordings. Now if it's not there why users like me would go there? Even Google Videos have similar content and materials.
Buying Youtube can be a strategic move to popularize Google Videos and reduce competition. Youtube has today two times more subscribers than Myspace - will it go the Napster way or will it continue showing what it is showing today? Only time will tell ....
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