In an article, from Wired magazine titled YouTube vs. Boob Tube, lots of questions surround the $1.65 billion acquisition of YouTube. Google is hedging their bets that its gonna be YouTube.
While YouTube is logging 65,000 uploads a day the state of the Old Commercial Broadcasting Model is spiraling downwards. Viewers are fast fowarding through commercials which have advertisers bailing, which translates to less budget for tv shows which means program quality suffers, furthering the downward spin to less viewers.
These advertisers are fleeing, taking their $67 billion with them with no idea where to spend it. Google with an annual revenue of revenue of $9.3 billion a year believes that the web has finally come into its own and now has the technology and content to be that venue.
Whether the internet could fill these gynormous shoes, by having the reach of tv, the pockets to absorb these dollars and focus to target content especially relevant to what the marketer is selling is part one of the 1.65 Billion dollar question. And although the hard part's been done and they've got the audience, the second half of this question that remains to be seen is how will they create a revenue model from this.
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