j_d_mcnugent wrote:cuban is kind of expert on selling worthless internet companies for billions so maybe he is right. it might not be due to lawsuits though. google may be able to turn youtube profitable but i dont think they will earn a decent return on investment. i just think they really over shot with this one...youtube is the next thing, not the next big thing.
That's true. I believe YT gets the lion's share of revenue, if not, all of it, via site placement for text ads, and that doesn't always match with such a dynamic medium such as video. YT hasn't developed the technology to post a tag or mechanism that triggers random video/Flash ads at the end of a movie clip (and in fact it's patented by Revver) while Google could have the ammunition to put a similar, if not better tagging technology which would revolutionize the business model of YT. But then again, Google's core competence is in developing technology that sorts static information, not so much when it comes to more dynamic mediums of information (save for Google Maps perhaps).