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Strategy report
To: Proximity Video Team From: Ichhya Malla Date: September 20, 2009 Subject: You Tube strategy analysis

Here is my You Tube strategy report. You Tube is the dominant video sharing website. Whether Gen Y users will stick with You Tube as their primary source for sharing videos will depend upon the improvement in the quality of their videos. If You Tube charges fees, then Gen-Y might not visit the site as frequently as they do today.


 * Profile**

You Tube was founded in February 2005 by Chad Hurley, Steve Chen , and Jawed Karim who were all early employees of PayPal. In November 2006, You Tube was bought by Google Inc. for $ 1.65 billion (Wikipedia 2009). It is now operated as a subsidiary of Google.

You Tube revenues come from the two sources: · advertisers who put the advertisement in between the videos · partnership deals with content providers such as CBS, Warner Music Group, and the NBA 
 * Competitive landscape**

You Tube has been a leader in providing free online video services, three years back You Tube was the dominant force. They won the battle in the video world by uploading user generated video and providing free T.V programs. It was user dominated, with about 70 million unique visitors a month in the US (and the sixth largest audience on the Web). It has become the clear leader in online video sharing, but in 80 percent of You Tube videos, the advertiser is not willing to put up their advertisement as they think it is not profitable.

Now You Tube is looking for different way to earn revenue. The ways You Tube can earn revenue is by charging the consumer subscription fee or via advertisement. They are trying to sale their videos but today in the market there are lots of alternative suppliers to buy videos. You Tube competitors are primarily in the Internet Content Providers industry. Although having a big share in the market, You Tube faces competition from AOL, HULU, and MySpace (Business Intelligence: YouTube Competitive Analysis, 2009). In the future You Tube will still have greater competition from video delivering companies like Comcast, TiVo, HULU, and Verizon Wireless. The cost of offering free videos to the consumer will keep increasing and You Tube is consumer driven website. In the past years they won the battle in the online video market but now they don’t have enough finance.  


 * You Tube’s Strategy**

The ownership of You Tube is a crucial ingredient for Google’s control of the economic rent that Google extracts from the whole of the Internet value chain. You Tube indirectly gives profit to Google. It gets Google a critical slice of growing online videos, which will attract more marketing dollars to the Internet as a whole. YouTube provides Google yet more important meta-data which can be cross-pollinated with data from other Google services (Telco 2.0, 2009). You Tube is serving a lot of unlicensed content, so with more effective licensed policies they could have more consumer interest with greater content that comes from more advertisement (YouTube's Potential Revenue, 2006). (Business Intelligence: YouTube Competitive Analysis, 2009)


 * Gen-Y implications**

Until You Tube offers free videos, Gen-Y would be willing to go to the website and prefer to watch the videos or share them in You Tube. This site is popular among the Gen-Y as the site is free of cost to visit and watch the video easily. In the future, in order to cover the cost if You Tube, charges the subscription fee or any kind of fees to be member or to watch the video or post it, there would be a big question if the current user would continue seeing videos on You Tube or whether they try and switch to other alternatives. Whether Gen-Y will be willing to stick with You Tube as their primary source of sharing videos after You Tube charges them would be a matter to think about. You Tube has won the battle in the past but will it be able to win the battle in the future?


 * __References__**

Telco 2.0.,Google's real YouTube strategy//.// (2009, June 26). The Register: Bitting the Hands that Feeds IT. Retrieved September 23, 2009, from http://www.theregister.co.uk/ 2009/06/26/google_youtube_ analysis/

YouTube's Potential Revenue. (2006, September 7). Retrieved September 22, 2009 from Venture Capital and Technology http://www.avc.com/a_vc/2006/ 09/youtubes_potent.html Wikipedia. (2009, September 22). You Tube. Retrieved September 24, 2009 from __http://en.wikipedia.org/wiki/ YouTube__

//Business Intelligence: YouTube Competitive Analysis //. (2009). Retrieved September 23, 2009, from Hoovers: __http://www.hoovers. com/youtube/ID 148460,targetbusiness_ intelligence--/free-co- samples-index.xhtml__

Blog proposal
 TO: Proximity video networking team FROM: Ichhya Malla SUBJECT: Blog post proposal DATE: October 27, 2009

I propose that we do our Proximity blog post on online video dominating Gen Y market. This post can be used by the online video companies like You Tube, HULU, AOL, and MySpace to try and improve their online video streaming and gain profit via smart business techniques.


 * Rationale**

Online video is growing rapidly. A few years back consumers would be waiting to watch their favorite program on T.V. But online video has made it easier and convenient for the user. The online video offering companies can together find a way to gain revenue from the user without losing their customer. They should do a proper business plan in order to have a financial support.


 * Sources**

I recommend that we organize the post around **__ Making Money from Online Video __** by Andrew Schrock where he mentions about how one can generate money by posting online videos. We can then embed information from his site in our blog post:  

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Report proposal
TO: Proximity Video Team FROM: Ichhya Malla DATE: November 25, 2009 SUBJECT: Proposal for report on YouTube

Google owned multimedia sharing website YouTube dominated the market in the past with its easy online video sharing facilities. Due to increasing competition emerging in the online multimedia market it has to adopt a new strategy and technological innovation to attract the Gen Y and maintain the same or more proportion of online video viewers. In order to appeal to new viewers and provide better facilities to existing consumers, Google has been introducing different type of innovative technology. I propose to write how Google is introducing new technology on You Tube in order for it to be the number one video sharing website.

YouTube which originally was limited to sharing online video is rapidly shifting to provide better technology and more facilities to the online viewers. · NetFlix availability in bunch of different devices. · NetFlix integration into new tech. · Emergence of serious competitors in the multimedia market. · Collaborations and merging of different online video providers with devices like Xbox360, Wii etc to see premium video content. · Providing new facilities to the video owners. There is a distinction between the cable TV and online videos but these days the online video provider are removing the difference and are providing the consumer with the facilities that a cable provides and more additional benefits for the viewers.
 * Need**

Clients of Proximity whose target is Gen Y- consumers need this report to understand the necessity of YouTube’s innovation of new technology and improve the existing technology. This enables YouTube to seize the online video market and provides the consumer with easier and better ways to share the videos.

The proposed report, “Google’s Innovative Technology and Gen Y’s Addiction to YouTube,” will cover the following topics: · Convenient way to access video and TV programs; · Necessity of YouTube to introduce new technology to keep up with demand of Gen Y; · Degradation of traditional cable and TV; · YouTube’s automatic filtration of copyrighted content to prevent copyright infringement which maintains healthy relations between YouTube and large media outlets. · YouTube’s union with Sony and Nintendo to bring YouTube for Television; · Google’s addition of automatic captions on YouTube. The report will also include attachments that outline the different new technology Google is accepting to provide better quality video to the viewers not only within United States but all over the world.
 * Topics**

The following items will be the main sources for the report. I still need to find about YouTube other innovative technology which would help them to compete.
 * Sources**

Slattery, B. (2009, 01 17). //YouTube TV invades your PS3, Wii.// Retrieved 11 22, 2009, from GamePro Media: [] wii YouTube announced its union with Sony and Nintendo to bring YouTube for Television.Brennon Slattery writes that YouTube has simplified the experience by enlarging text and streamlining navigation to function better on the Wii and PlayStation 3's built-in Web browsers. In the source it is also mentioned that an optional auto-play capability also allows users to view related videos sequentially, just like flicking through cable programs. Slattery says that this move into the gaming world heralds an era wherein YouTube will be available through a bunch of different devices.

Beijing Time. (2009, 11 20). //Google adds automatic captions to YouTube.// Retrieved 11 22, 2009, from http://english.sina.com/technology/2009/1119/286873.html Google announced that it was adding automatic caption capability to videos on YouTube. Google’s vice president Vint Cerf said that world’s information should be accessible to everyone. Although the feature is not widely used, YouTube users have been able to manually add captions to videos. Ken Harrenstien, a deaf Google software engineer who led the caption project, said that the addition of automatic captioning is a huge step forward to make video universally accessible. Google also announced that a new feature called automatic caption timing will make it easier for users to add captions to their videos.

HELFT, M. (2009). //YouTube and Universal to Create a Hub for Music.// New York: The NewYork Times. YouTube and Universal Music Group mentioned that they would create an online hub for music videos and related contents, called Vevo. In the agreement it is mentioned that YouTube would put more professionally produced content in front of its huge audience and earn more money from advertising. It is stated that the music videos of Universal’s artists will be available both on vevo.com which will be owned by universal and powered via YouTube’s technology and on Vevo channel on YouTube. The revenue generated would be shared by both the companies. Eric E. Schmidt, Google’s Chief Executive Officer, said that the two sides have finally created a model by combining Universal’s content and YouTube’s audience on a site that will attract the advertisers.

STELTER, B. (2009). //Deal Brings TV Shows and Movies to YouTube .// New York: The New York Times. Brian Stelter mentions that YouTube is taking steps to transform from the online jumble of amateur videos to a destination for a mainstream of TV programs and movies. Stelter informed that YouTube has signed deals with Hollywood studios to showcase thousands of TV episodes and hundreds of movies on its website. Google, which owns YouTube, said that they would innovate payment for some premium content. In order to attract more advertising, YouTube is striving to add more professionally produced videos. Stelter mentions that YouTube will be competing directly with the growing array of websites that display full length TV shows and free movies on the internet. .

Team conference presentation proposal
As a member of video team I would propose the following topic for our presentation: ·<span style="font-family: 'Times New Roman'; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> How online video growing in the video world. ·<span style="font-family: 'Times New Roman'; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Website like You Tube, Hulu, and Twitter capturing the market. ·<span style="font-family: 'Times New Roman'; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Online video dominating the video market with majority of consumer watching online programs and movies. ·<span style="font-family: 'Times New Roman'; font-size-adjust: none; font-size: 7pt; font-stretch: normal; font-style: normal; font-variant: normal; font-weight: normal; line-height: normal;"> Degradation of traditional video.

Sales letter and report prospectus
Dec 9, 2009

Mr. Mark Jacobs, Director of Marketing Schiller Corporation 508 E. Dulaney Valley Road Towson, MD 21204

Dear Mark:

I enjoyed talking with you yesterday at Proximity’s Next Generation Media seminar regarding Schiller Corporation’s need to promote its brand to Gen Y consumers. Enclosed you will find a prospectus for the report I mentioned describing how YouTube and leading companies are collaborating to provide mainstream TV.

As you noted yesterday, Schiller Corporation feels that it must establish brand identity with Gen Y now in order to be known in the market to sell its products to the age group who most uses YouTube. I believe Proximity can work with you to devise a comprehensive campaign that uses on-demand media and social networking to achieve that goal.

We can provide you with customized survey and focus group results to help shape Schiller Corporation image as a progressive, green company. Our faculty consultants can advise your sales force on how to position new products, and our teams can help you to decide the time and placement of the advertisement of your product to appeal Gen Y. In addition, we have trained student marketers who can promote Schiller Corporation and its product on video networks such as YouTube. Our research shows that using student representatives to advertise the product on YouTube is a far more effective strategy for reaching Gen Y than advertising it on cable TV.

I invite you and your staff to join us at Proximity’s Towson office for a special focus group session on Schiller Corporation’s Gen Y brand image. After that session, you can meet with members of our group to discuss how Proximity can help you meet your marketing goals.

Sincerely, Ichhya Malla Associate Media Analyst

enclosure


 * [[file:Final Report (ENGL 317).doc]] ||