Tuesday, September 26, 2006

"Driving bandwidth costs up means stealing the percentage share of the total audience from others. The higher the costs, the fewer can compete."


neutral
Originally uploaded by benbarren.
It's pretty boring people who complain about YouTube's $1m a month in bandwith, when google spends hundreds of millions or was that a couple billion on pipes, bandwith and the like. "The Google Test" is certainly getting a bi-polar response from people. Decide yourself, I lean more towards the argument than against when analysing YouTube's cost line and market leadership.

Proving the advertising case is different tho to the Google Test Thesis, but Targeted TV Ads I think will happen within 24 months, actually less. It's definitely where the next Adsense type play will come from - And at moment, it could be Google, YouTube or a startup that invent the technology and become the default video ad standard.

William Jolitz on VentureBeat : "Driving bandwidth costs up means stealing the percentage share of the total audience from others. The higher the costs, the fewer can compete. It’s a bold strategy not for the timid businessman or investor. Like the oil barons of another age (where do you think we got Stanford University), getting the corner on the market is mostly keeping everyone else out of it."

Fortune, care of New Webguru-RRW : "Schmidt's most compelling point -- and the most visible glimmer of a method to Google's madness -- is the power behind the not-so-secret data centers Google is building, particularly a 30-acre facility in Oregon whose existence he references without provocation. "That massive investment should translate into the ability to build applications that are impossible for our competitors to offer, just because we can handle the scale," says Schmidt."