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An Analysis of the Current and Future use of Internet Technologies of YouTube - Essay Example

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Executive Summary: YouTube since its inception has been on the road of exponential growth. Its solid foundation received farther strengthening when the company merged with Google in 2008. This merger has been good for both companies; each is complementing the operations of the other while retaining their individual identity…
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An Analysis of the Current and Future use of Internet Technologies of YouTube
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Download file to see previous pages The website through this new layout is able to avoid the clustered view, which its other competitors are displaying. The company has taken effective and timely measures to maximise the opportunities presented by m-commerce. Although the company has problems with regards to its database maintenance and high cost of streaming videos, but still then it can minimise these losses by selling the viewer data that it has extracted through its website. However, the company is very effectively employing its e-marketing mix and as a result it has been able to establish strong brand equity and brand awareness. The company in order to keep its growth going needs to encourage its community to add more interesting video to the website. The way the company has used its strategic alliances with other companies has been exceptional. It not only has added more viewers to its website but also it has created a new utility for its website. It has show the world how online medium can be integrated with television technology; it has show the world how election campaigns can be run on the internet and most importantly it has given its customers new audiences. Background of YouTube: In 2005, founders of YouTube registered the domain name and URL for the website and initiated its Beta phase. The site was meant for other businesses to embed their videos on this forum. Looking at the profitability potential of the websites concept, Sequoia Capital invested the company $3.5 million. Before its official launch in December 2005, the website was already generating traffic of 8 million viewers (The Telegraph, 2010). The website enabled viewers to share their favourite videos, watch and discover new videos. The website was receiving 100 million video views per day and simultaneously was being uploaded with 65000 videos each day; this was the period of July 2006 (YouTube Timeline). The progress of You tube was being watched by Google very closely, having seen the progress the company was making, Google went on to buy the company for $1.65 billion (BBC News, 2006). Now the company works a subsidiary of Google, but still retains its individual identity (Arnott, 2008). With this merger YouTube became YouTube timeline. This new forum facilitated individuals across the globe to connect, inspire and inform their counterparts. YouTube since its merger with Google has gone on to make strategic alliances with companies like CNN, Reuters and etch. It has broadened the scope of its operations by offering the forum as a debating platform and also a place where election candidates can undertake their election campaigns. You Tube’s Business: Since its inception YouTube has become one of the most popular search engines. YouTube has become the second biggest search engine all over the world (Johnson, 2009). Thus, it provides a great opportunity for online advertisers to use this forum to advertise their products and services (Johnson, 2009). The main attraction for online advertisers is the high traffic that the website is able to generate towards it. In this regards, YouTube in recent years have undergone deals with different companies, in which its host live streaming events, allow video renting and display music videos site links (Halliday, 2011). Business Environment of YouTube: YouTube can be classified as a business that is competing in a video sharing market. With its strong brand equity, brand awareness and a ...Download file to see next pages Read More
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