Last year, I wrote a block entry indicating that there was no good business model behind the social network sites. yet. Recent events, including Viacom and CBS’s pulling videos from YouTube and recent news that Viacom filed a $1B lawsuit against Google. Apparently, only deep-pocket, fast-growing companies like Google would pay such a price for a tiny revenue and no investor even cared. However, the share of attention that Google executives paying to YouTube may be too much. If it had been acquired by a media company, YouTube might have had less legal cases, but the business model is still not clear how copyrighted materials to be tracked and revenue to be shared with the owner.
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« Social networking will soon go mainstream | Main | Challenge Assumption »
March 17, 2007
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