Ronnie05's Blog

Pay per Download: Will Google milk Money out of YouTube?

Posted in Revenues and Monetization, Value added services and applications by Manas Ganguly on February 17, 2009

I graduated into the internet in the year 2000! My first email account was the huge popular usa.net then. However, in mid of 2001, usa.net migrated to being a paid service under the American Express group. Almost none its consumer base migrated to the paid service. Internet has been a “liberating and democratic medium”. Information and communication was available free, it was the economics of “Free”. I call it Freetardonomics! A lot of the Freetardonomics was through using Google as the Gateway. On 13th February 2009, Google decided to monetize its hugely popular You Tube. You Tube has been the problem child for Google from sometime because inspite of its huge following, it was not adding revenues and profits to its financials! The paid download is a new way for Google to add monetization options for its services and looking beyond the advertisement streams! Most of the downloads will be charged $1 and Google is trying to replicate Apples iTunes business model. (If users can pay for music, why not videos?). Not all videos will be monetized! One can guess that Google will look to monetize content such as music videos, commercials, soaps and other entertainment content. It would also probably look at educational content to be monetized. The typical model would be a trailor of 30 seconds of the video content and then the channel asking for purchase of the content. However, the one immediate challenge that Google faces is how would it control the hacks and the download tools available to users? How would it control mechanisms like Firefox plug ins and webs sites like YouTubeKeep.com, which allow users to rip content from YouTube at will?

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