Principled Innovation LLC

GooTube

October 9th, 2006

Google’s decision to acquire YouTube is brilliant, and I don’t believe that just because the little bit of Google stock I own went up $8.50/share. (Yeah!) Seriously though, I have three strategic reasons for my bullish attitude toward this business deal:

1. Google is the major Internet phenomenon of this decade. YouTube is quickly becoming the next major Internet phenomenon and, on top of that, it has been kicking Google Video’s butt. The marriage of these two great brands and innovators makes more immediate business sense than did eBay’s purchase of Skype last year.

2. Google’s powerful search and advertising capabilities should be able to monetize YouTube pretty quickly. Moreover, Google, as the world’s largest media company, has the brand equity and clout to make deals that will address YouTube’s outstanding copyright issues. As a company, Google possesses the depth of commitment to the mission of organizing the world’s information to see through the effective integration of YouTube across Google.

3. YouTube’s surging popularity is making plain the extraordinary potential of Internet video. After watching Yahoo add Flickr and del.icio.us to its holdings, Google’s leaders now recognize the supreme importance of user-created content, and understand that the company’s long-term success will not be built entirely on the power and accuracy of its search algorithm.

So, I’m liking the possibilities of GooTube. Of course, we will see how it turns out over time, but right at this moment, I am very optimistic.

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Entry Filed under: Principled Innovation Blog, What's New?, Social Media, Innovation, Associations, Extreme Makeover, The Association Innovator