Innovation Behind Youtube
Thinking different and beyond our convention is the best way to get popularised and to achieve something incredible. In this article we have planned to introduce our viewers with Innovation Behind Youtube, three young guys planned something new and unique which proved to be the right step they took at their young age.
Starting of youtube
YouTube began when three PayPal employees started to create a video-sharing website on which users can upload, share, and view content. The Internet domain name www.youtube.com was activated on February 15, 2005.
YouTube was invented by Steve Chen, Chad Hurley and Jawed Karim out of a garage in Menlo Park. The inventors became millionaires when they sold their invention for 1.65 billion dollars to the search engine Google.
According to the fact sheet, YouTube is a destination to watch and share original videos worldwide through the Web. Users can upload and share video clips on www.YouTube.com and YouTube enables video embedding that allows YouTube videos to be placed on non-YouTube pages.
YouTube Inventor – Steve Chen
Steve Chen was born in 1978 in Taiwan and immigrated to the United States when he was 15. He was educated at the University of Illinois and after graduation found employment at PayPal, where he met his fellow YouTube co-inventors and co-founders Chad Hurley and Jawed Karim. Currently, Steve Chen serves as the Chief Technology Officer at YouTube.
YouTube Inventor – Chad Hurley
Born in 1977, Chad Hurley received a Bachelors degree in Fine Art from the University of Pennsylvania and was later employed eBay’s PayPal division. Currently, Chad Hurley serves as the Chief Executive Officer at YouTube and is considered a whiz at user interface design. As a sidenote: Hurley designed Paypal’s trademark logo.
YouTube Inventor – Jawed Karim
Jawed Karim also worked at Paypal, where he meet his future corporate cohorts. However, Karim has also pursued an advanced degree at Stanford University and is considered the elusive member of the threesome. According to Jawed Karim the inspiration for YouTube came from the halftime faux pas committed by Janet Jackson and Justin Timberlake, when Janet’s breast was accidently exposed. Karim could not easily find that video clip online and then a few others. Not a problem he would have today.
The Youtube Story
The story of YouTube is a fascinating and inspiring one and shows how a single great idea can by the means of viral and word of month overtake all the big boys and blow them away.
YouTube originated much like Google, Ebay and Microsoft from a garage and was launched early in 2005. Apparantly one night the guys became frustrated while trying to email a video clip. It was then they formulated the idea of a video sharing platform. This just goes to show the old saying is true. Find a problem then provide a solution.
The Youtube trademark domain name was registered on Feb 14th 2005 and the site went live in May. Youtube was instantly a roaring success and news of the site spread by word of mouth which fuelled its initial growth. As the founders were broke, the official launch came at the end of 2005 after securing funds of $3.5 million from Sequoia Capital, followed by a further $8 million during April 2006.
This cash was needed to keep the servers going as hosting so many videos required enormous bandwidth. The cash also allowed new features to be added further adding to its success and growth. Amazingly Youtube still wasn’t making revenue and not spending a penny on advertising at this time.
They cleverly played it very smart by encouraging and making it easy for the viewers of the site to do the promoting. Viral marketing at its best, with simple ideas such as having very short links to videos and the tell a friend feature and possibly the best idea of allowing videos to easily be embedded in profiles of social networking and other sites all.
The video voting feature also created a sense of community as did the user profile pages. The buzz of online videos and press attention gained them even more publicity and users.
YouTube and copyright
Of course it was not always a bed of roses during the growth of the company. The copyright issues dogged the company on many occasions and probably will continue to do so. Although the site was designed for user made videos, plenty of copyright material was uploaded which was a major factor of their amazing growth.
Youtube very cleverly dealt with this issue in utilizing the very grey area of the DMCA Safe Harbor Provisions; which provides protection to service providers from liability for the activities of its users. As they were seen in the eyes of the law to fall into that category, they have been somewhat protected. So far anyways. And very cleverly instead of trying to be crusaders and digging their heels in, which has been the undoing of several other companies (Napster anyone), they extended an olive branch to some copyright owners in the form of revenue sharing deals which effectively licensed much of the content.
YouTube has software in place which can identify soundtracks in videos posted by its users, the copyright owner then gets a slice of any advertising revenue run alongside the video. These partnerships also helped pave the way for what was about to happen next.
YouTube the BIG deal
The huge payoff for YouTube’s video sharing site came on October 9, when search engine giant Google Inc., acquired the business for $1.65 billion in Google stock. And now with Google in the picture, any lawsuits will probably just become background noise.
From nothing to $1.65 billion in under two years thats a serious achievement, and one day i am sure the official story will come out may be in a movie and shown on Youtube!
Growth in 2006
During the summer of 2006, YouTube was one of the fastest growing sites on the Web, uploading more than 65,000 new videos and delivering 100 million video views per day in July. It was ranked the fifth most popular website on Alexa.
The website averaged nearly 20 million visitors per month, according to Nielsen/NetRatings, where around 44% were female, 56% male, and the 12- to 17-year-old age group was dominant. According to the website Hitwise.com, YouTube commanded up to 64% of the UK online video market.
YouTube entered into a marketing and advertising partnership with NBC in June 2006. Purchase by Google On October 9, 2006, it was announced that the company would be purchased by Google for US$1.65 billion in stock. The purchase agreement between Google and YouTube came after YouTube presented three agreements with media companies in an attempt to escape the threat of copyright-infringement lawsuits. YouTube planned to continue operating independently, with its co-founders and 67 employees working within Google.
The deal to acquire YouTube closed on November 13, and was, at the time, Google’s second largest acquisition. Partnership with google proved profitable for YouTube’s investors. At the time of reporting, Chad Hurley’s at more than $395 million and Steve Chen’s at more than $326 million.
The Wall Street Journal and New York Times have also reviewed posted content on YouTube, and its effects upon corporate communications and recruitment in 2006. PC World Magazine named YouTube the ninth of the Top 10 Best Products of 2006.
Because of its acquisition by Google, it is sometimes referred to as “GooTube.”
What are Youtube Awards
The YouTube Awards or YouTube Video Awards are awards given out as formalized recognition of the best YouTube videos of the year, such as favorite music or comedy genres, as voted by the YouTube community. The awards were organized in 2007 to “call out some of the most popular videos and let the users choose which ones deserve some additional recognition”.
These awards are presented to those videos having high-ranking and must be recognized by dynamic lists of most-viewed videos. The winners receives a trophy, and they are invitated to an event to occur “later this year”. YouTube present awards to most watched videos every year.
In June 2009, Business Week reported that, according to San Francisco-based IT consulting company RampRate, YouTube was far closer to profitability than previous reports.
In May 2013, YouTube launched a pilot program to begin offering some content providers the ability to charge $0.99 per month or more for certain channels, but the vast majority of its videos would remain free to view.