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December 9, 2006
YouTube ... GooTube ... WeTube!
The WSJ has a piece today reporting that Fox, NBC, et al., are busily discussion a YouTube-a-like they would jointly create. This is one of those only-in-a-VPs-boardroom ideas, the sort of thing that aspiring young MBA Veeps dream up (and leak to the WSJ), and that has virtually no chance of happening in the real world of lawyers, rivalries, and vested interests.
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The fact is, YouTube has already peaked. People are going to create and distribute video, but the YouTube fad is already fading fast. Frankly, YouTube is a pain in the neck as a platform. In its current version, it will always be a personal video junkyard and no more. Its founders got lucky, and frankly don't have the greatness to really aspire to more for this platform. In a year it will be a distant 3rd or 4th.
In March 2000 Verisign paid 21 billion for Network Solutions and sold it in November 2003 for 100 million... stuff happens.
This is precisely the type of joint venture that should have been formed to bid on You Tube, MySpace, Flickr, Reddit, and Digg.
While I too feel that the complexities of such an endeavor may be unmanageable for strategically stillborn broadcast media folk, this is one of few options that they have.
The real problem is a valuation issue - none of the major networks have management teams courageous enough to make acquisitions that may jeopardize their jobs.
The risk adverse attitudes of broadcast media continues to prevent sustainable monetization.