As John points out, it would make most sense for a "major entertainment company, like the ones mentioned in the [NY] Post piece" to buy YouTube. However, the ink wouldn't even be dry on the page before the lawsuits from competing entertainment companies come in, demanding their content be deleted from the site.
The comments, as always, are the best part of John's post. Peter Cranstone says:
Let's be boring capitalists shall we. How much revenue is You Tube generating vs. how much is it spending. Then lets take a multiple of revenue and use that as a starting point.Jim points out the danger of holding out for the big bucks:From what I can learn on the web revenue they are currently at zero dollars of revenue. Not hard to do the math on that one. Expenses are currently $20 million plus a year for bandwidth, storage, and G&A.
What's the cost for a user to switch from You Tube to another "free" storage site - nothing.
...if Bebo or YouTube holds out for the big money TOO long they'll simply get shoved out by other players or the total saturation of the marketplace (which is already happening).
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