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YouTube: a case study
Transcript of YouTube: a case study
Alden Luis MSalcedo
Ibrahim Zain Waleed
Table of Contents
YouTube's Business Model
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A.T. Kearney’s Internet Value Chain
Further negative effects
Porter's Five Forces Analysis
Rivalry among Existing Firms (Low)
Bargaining Power of Suppliers (Low)
YouTube makes use of Google's facilities and technology
This presentation examines the relationships between YouTube and information technology systems.
YouTube’s technology from a theoretical perspectives using Porter’s competitive forces, value chain, A.T. Kearney’s internet value chain and co-creation of value are looked into.
Richmond, W. (2011). Globally, YouTube's Market Share Is 20 Times Its Nearest Competitor Retrieved June 8, 2013, 2013, from http://www.businessinsider.com/globally-youtubes-market-share-is-20-times-its-nearest-competitor-2011-12#ixzz2VQfEEtPX
Bargaining Power of Buyers (Moderate)
However, YouTube has;
deeper market penetration
very user friendly
vast volume of content
Barriers to Entry (Low)
YouTube established itself as the premier video hosting service but the technology (video hosting on the internet) is quite simple.
* Pioneer & world’s leader video sharing platform
* Cost advantage of being part of Google
* Accessibility in countries with low broadband capacity
* Legal issues i.e. copyright, privacy, security, copy fraud & abuse
* YouTube has revolutionized TV
* More business partners
* Stiff competition from other online video sites that lead to revenue issues
* Violation of rules and regulations with the increase of spam contents by irresponsible users
Artero, J. P. (2010). Online Video Business Models: YouTube vs. Hulu. Palabra Clave, Vol. 13(No. 1).
Green, J. B. J. (2009). YouTube Digital Media and Society Series.
Offers free video on a global scale but with localized features for important markets
Removed the technical barriers to the widespread sharing of videos online.
Users could upload and view streaming videos without high levels of technical knowledge, and within the technological constraints of standard browser software.
Managed its growth of users well by providing enough infrastructural bandwidth to handle the large volumes of uploading and downloading.
Scalability- Core Competency.
Business Model is Advertisement-based (makes $15 Million per month)
Lewis, J. C. C. (2011). Towards A Framework for Web 2.0 Community Success: A Case of YouTube. Journal of Electronic Commerce in Organizations
Threat of Substitutes (Low)
Cable TV and the Smart TV
Co-Creation of Value
YouTube scans every video uploaded against their database and checks for copyright matches.
view, upload and share videos for free
YouTube utilizes technology in both the physical and digital parts of their operations.
Adobe Flash (.flv) format- enabled for a more efficient viewing experience.
Apps for mobile devices.
Enable “content creators to earn revenue for their creativity”.
“Broadcast yourself”- rediscovering unusual talent.
Redesigned by charging for premium content (in May 2013)
Lewis, J. C. C. (2011). Towards A Framework for Web 2.0 Community Success: A Case of YouTube. Journal of Electronic Commerce in Organizations.
Artero, J. P. (2010). Online Video Business Models: YouTube vs. Hulu. Palabra Clave, Vol. 13(No. 1).
Millar, B. (2009). The Rise of the Digital C-Suite: How Executives Locate & Filter Business Information, Forbes Insights.
user friendly interface
of Me At The Zoo
YouTube uses colocation centres with its parent company Google.
What Is My IP Address. (2013). What is a Colocation Facility? Retrieved May 31, 2013, 2013, from http://whatismyipaddress.com/colocation-facility
YouTube uses TrueView for video advertisements
“The competence that customers bring is a function of the knowledge and skills they possess, their willingness to learn and experiment, and their ability to engage in an active dialogue.”
Pralahad, C. K., & Ramaswamy, V. (2000). Co-opting Customer Competence. Harvard Business Review, 78(1), 79.
Chang, F., Dean, J., Ghemawat, S., Hsieh, W. C., Wallach, D. A., Burrows, M., . . . Gruber, R. E. (2008). Bigtable: A distributed storage system for structured data. ACM Transactions on Computer Systems (TOCS), 26(2), 4
A distributed storage system for managing structured data that is designed to scale to a very large size
Allows users to quickly upload or download data- highly scalable.
A type of in-stream video advertisement which gives viewers the option to skip advertisements after five seconds
Pashkevich, M., & Zigmond, D. (2012). Empowering Online Advertisements by Empowering Viewers with the Right to Choose. Journal of Advertising Research, 52(4), 65
A type of data centre that rents equipment space and bandwidth to companies and businesses that need a network service provider
> Channel subscription
> Leave comments, like or dislike and share videos
> Social Media
YouTube is powered by lighttpd
Lighttpd. (2013). Web 2.0 Retrieved June 6, 2013, 2013, from http://www.lighttpd.net/
Lighttpd is an open-source web server that is optimized for high performance websites with high traffic.
>third most liked Facebook page with more than 75 million likes
YouTube's Content Delivery Network (CDN)
The CDN reproduces content in multiple locations. Users have a better chance of the content they want to be in a location closer to them.
MySQL. (2013). What is MySQL? Retrieved June 5, 2013, 2013, from http://dev.mysql.com/doc/refman/5.1/en/what-is-mysql.html
YouTube's databases are structured and organized into physical files that are optimized for speed.
MySQL allows YouTube to cluster data for faster delivery of its videos
Best, D. (2006). Web 2.0: Next big thing or next big internet bubble. Technische Universiteit Eindhoven
Provides a “rich user experience, user participation, dynamic content, metadata, web standards and scalability”
Google’s Security Program Rules
DigiCert. (2013). What Is SSL (Secure Sockets Layer) and What Are SSL Certificates? Retrieved June 3, 2013, 2013, from http://www.digicert.com/ssl.htm
SSL (Secure Sockets Layer) as a standard security technology for establishing an encrypted link between the server and the users.
DNSSEC-uses a set of security extensions that provide authentication of DNS (Domain Name System) data and prevent against attacks.
PageData. (2013). Top Pages Retrieved June 11, 2013, 2013, from http://www.pagedatapro.com/
Barber, C. J., Oswalt, B., & Smith, L. A. (2012). A response to markup madness in the wide world of web development. Association of Business Information Systems, 58
YouTube Data API (Application Programming Interface)
Google. (2013a). Developer's Guide: Python Retrieved June 6, 2013, 2013, from https://developers.google.com/youtube/1.0/developers_guide_python
Allows users to retrieve and update the content on the YouTube website.
Can be used to search for videos, update videos, make comments on playlists and user profiles.
> No to "hate speech"
> YouTube Developer
> Google’s Vulnerability Reward Program
YouTube 'Feather' beta
YouTube. (2013a). "Feather" Beta Retrieved June 6, 2013, 2013, from http://www.youtube.com/feather_beta
Enables YouTube videos to be watched with the lowest latency possible.
It achieves this by severely limiting the features available to the viewer and making use of advanced web techniques for reducing the total amount of bytes downloaded by the browser
> Creator Hub
Google. (2013b). Vulnerability Reward Program Retrieved June 11, 2013, 2013, from http://www.google.com/about/appsecurity/reward-program/
> YouTube Space
> 56 countries and 61 languages
YouTube. (2013c). Statistics Retrieved June 10, 2013, 2013, from https://www.youtube.com/yt/press/statistics.html
YouTube on Google Glass
-Directly upload videos to YouTube
Miller, C.C. 2013, Google Searches for Style, The New York Times, p. B1
Data Center of the Future
'Super-Cooling' Technology- EHD
Keesey, L. (2011). NASA is Making Hot, Way Cool Retrieved June 12, 2013, 2013, from http://www.nasa.gov/topics/technology/features/thermal-control-tech.html
YouTube Video Editing
Ogren, E. (2008). Google Adds Video Editing Capabilities To Picasa. Information Week, from http://www.informationweek.com/internet/google/google-adds-video-editing-capabilities-t/229209399
-Professional editing software
-Video editing capabilities added to Picasa
It is essential for YouTube to keep up with the ever changing technologies but at the same time making sure that policies are enforced.
YouTube's Business Model and Strategy
YouTube and Technology
The Future of YouTube
Productivity and Efficiency
World without borders
Karagiannopoulos, G. D., Georgopoulos, N., & Nikolopoulos, K. (2005). Fathoming Porter's Five Forces Model in the Internet Era. 7(6), 66-76.
Porter, M. E. (2001a). Strategy and the Internet. Harvard Business Review, 1, 67.
"The Internet provides 'buyers' with easier access to information about products and suppliers"
YouTube. (2013), History of YouTube, Retrieved June 6, 2013, 2013, from https://www.youtube.com/watch?v=x2NQiVcdZRYss
Carmody, T. (2013, March 4, 2013). It's not TV, it's the Web: YouTube partners complain about Google ads, revenue sharing Retrieved June 10, 2013, 2013, from http://www.theverge.com/2013/3/4/4062810/youtube-partners-complain-revenue-sharing-google-ads
YouTube. (2013e). YouTube Live Retrieved June 10, 2013, 2013, from http://www.youtube.com/user/Live/about
1. Why does YouTube use Flash (flv.)?
YouTube. (2013). Content ID disputes, Retrieved June 10, 2013, 2013, from http://www.youtube.com/yt/copyright/content-id-disputes.html
Roser, T., Samson, A., Humphreys, P., & Cruz-Valdivieso, E. (2009b). Co-creation: New pathways to value (pp. 4): Promise Corporation.
2. How can YouTube prevent illegal content from being uploaded?
3. Why did Google buy YouTube?
Shapiro, C., & Varian, H. R. (1998). Information Rules: A Strategic Guide to the Network Economy. Cambridge, MA: Harvard Business School Press.
Page, M., Viviez, L., & Firth, C. (2010). Internet Value Chain Economics: Gaining deeper understanding of the Internet economy: A.T. Kearney.
YouTube. (2013f). YouTube Space Retrieved June 10, 2013, 2013, from http://www.youtube.com/yt/space/