YouTubeGoes International

By: Joe Andersen & Laci Spaulding

How it Began Steve Chen, Chad Hurley, and Jawed Karim All worked at PayPal In their early 30’s when they started

YouTube They started talking about it when Janet

Jackson’s breast was exposed during half time and they couldn’t find it on the internet

Mary Bellis: “Who Invented YouTube?” <http://inventors.about.com/od/xyzstartinventions/a/YouTube.htm>

Problems A lot of the videos posted are homemade,

but there is a lot of copyrighted material on YouTube

Critics have predicted that they will eventually be sued into oblivion because of copyright infringements

Hurley and Chen have spent months trying to convince major media executives that YouTube could help make more money for them

MSNBC“Google buys YouTube for $1.65 billion” <http://www.msnbc.msn.com/id/15196982/>

Google Buys YouTube Google purchased YouTube for $1.65

billion Google’s CEO Eric Schmidt believes

that more viewers and advertisers will migrate from television to the internet

Schmidt says that “this is the next step in the evolution of the internet.”

MSNBC“Google buys YouTube for $1.65 billion” <http://www.msnbc.msn.com/id/15196982/>

Google’s Goal “The long-term goal isn't just to add richer,

more professional fare but also to drive YouTube beyond PC screens and onto other video displays: mobile phones, handheld players, and most important, the living room TV.”

Google just launched a deal with Apple to put YouTube on it’s new products

The big thing is accessibility BusinessWeek. Jennifer L. Schenker “Google Takes YouTube Global” <http://www.businessweek.com/globalbiz/content/jun2007/gb20070619_512226.htm?

chan=search>

Benefits

Analysts believe that “many companies, particularly those in the travel, auto and entertainment industries, would be willing to pay a premium price for online video ads since they could be more effective than text-based ads.”

Steve Weinstein, an analyst with Pacific Crest Securities, stated:• "This is a stock you should stick with. Google is

working because of the earnings performance. Their numbers are mind boggling compared to what everyone else is putting up."

CNN Money. Paul R. La Monica “Google Stock Closes at New All-Time High” <http://money.cnn.com/2006/10/23/technology/google/?

postversion=2006102313>

Why Go Global More than 50% of YouTube traffic

comes from outside the US. Online video viewing accounts for

almost half of the Internet’s data traffic.

80% of British online population 15+ watch video on internet

Only 76% in US

Newteevee.com/2007/06/19/youtubes-global-ambitions-get-local/

YouTube Stars

YouTube Users Youtube.com users come from these countries: United States 27.2% Japan 6.4% Germany 4.5% United Kingdom 4.0% Brazil 3.9%

Youtube.com traffic rank in other countries: Germany 2 United States 914 Japan 4 United Kingdom 5 Brazil 6

http://www.alexa.com/data/details/traffic_details/youtube.com?q=&ref=stb

Challenges US – Copyright Infringement Considered a major threat to governments

who want to keep certain content away from their citizens

YouTube users in Iran are using the site to denounce brutality [warning: video contains graphic content], torture and censorship on the part of their government.

Video campaign from Zimbabwe by a group called Sokwanele, which uses YouTube to expose civil rights violations in that country.

http://www.pbs.org/mediashift/2007/09/breaking_government_blockadesy.html

Challenges• Governments who want to keep their citizens isolated from content

they consider inappropriate or subversive• Become the target of state censorship• Iran

Iran’s government claims that its ban is to protect its citizens from “corrupting films and music.

• Thailand Just lifted a five-month long blockade of the site because of videos deemed

offensive to the King. YouTube has been blocking specific clips in Thailand and now the government wants even more clips banned for implicating a royal advisor in masterminding last year’s coup, according to AFP.

• Turkey Turkish court ordered the country’s ISPs to block YouTube because of clips

which are allegedly insulting to Mustafa Kemal Ataturk, the country’s founder

In March of this year, a court ordered Turk Telecom, a major Internet provider, to block it again for that very same reason.

http://www.pbs.org/mediashift/2007/09/breaking_government_blockadesy.html

Challenges Repressive Governments try to Block

Access to YouTube• Zimbabwe • Cuba• China• Morocco• Syria• Egypt

Competition Dailymotion.com

• Paris Based• 2 years old• 1.3 Billion page views – 59th most-visited

site in the world• Currently the market leader in France• Operates in Italy, England, Germany, US,

Spain, and Japan.• Available in 20 Countries

Newteevee.com/2007/06/19/youtubes-global-ambitions-get-local/

Competition MyVideo.de

• German media site• Recently partnered with ProSiebenSat.1

Media, a German television broadcaster• Modeled after YouTube• Uses television to market the video sharing

site

Newteevee.com/2007/06/19/youtubes-global-ambitions-get-local/

International Strategy Local Partnerships

• UK BBC

• France France 24

• Spain Spanish Antena 3 Cuatro TV

• Brazil Portuguese RTP

• Netherlands VPRO NPO

• Local Partnerships– European Football

(soccer) Clubs– Chelsea FC– AC Milan– Barcelona FC– Real Madrid

– Global Organizations– Greenpeace– Friends of the

Earth– UNHCR– Medecins du

Mondenews.bbc.co.uk/2/hi/technology/6757525.stm

International Strategy Local Partnerships

• European Football (soccer) Clubs– Chelsea FC– AC Milan– Barcelona FC– Real Madrid

• Global Organizations– Greenpeace– Friends of the Earth– UNHCR– Medecins du Monde

More than 1000 Global partners

150 deals signed in Europe from March 2007 to June 2007

Newteevee.com/2007/06/19/youtubes-global-ambitions-get-local/

Create a Local Experience “We want to create a YouTube

experience that is a local experience. Its not just about translating, its also about creating content unique to certain countries.” Steve Chen, Cofounder

news.bbc.co.uk/2/hi/technology/6757525.stm