When Google paid $1.65bn for YouTube many questioned what the site's business model was and if it could continue to grow its audience. Well so far the answer is yes. Site visits to YouTube.com grew by 70 per cent between January and May 2007. To put this in context, site visits to 64 other video-sharing websites grew by just …
Growth yes... but what about the first question?
Where is the business model!?
the problem with youtube is quality.
The problem with Youtube is the quality of the video encoding that is really sub-par compared to other offerings like Stage6 or Atomfilms.
I like web video, but it must look good full screen on at least a 17 inch screen and acceptable on a 32 inch TV. Most of the videos from Stage6 do, the ones from Youtube don't.
The good things with Youtube is that it's easy to embed a youtube video in your own website and that there is a lot of searchable content, but until Youtube provide full screen quality close to SD TV in full screen I'll stay away from the service.