YouTube - The Complete Profile

Update 2: YouTube was just recently acquired by Google, so some of the sections in this article may no longer apply. I’ll try and update it accordingly when I get the time.
Update: As per some comments and suggestions I received, I've added a new "YouTube APIs and Codes" section. You can digg this story or add it to del.icio.us.

This post is a part of a series of immensely in-depth profiles and biographies I'll be doing here of the most successful Web 2.0 companies. If you like it, don't forget to subscribe to the RSS feed for more in the future!

YouTubeOne of the companies that would easily classify as a poster-startup for Web 2.0 is YouTube. Since its launch in February 2005, it's managed to attract crowds, cross milestones, create fads, top lists, and even get a mention at this year's Emmys! Founded by three early PayPal employees, YouTube is a free service that lets users upload, share, and view video clips. It's been the center of a lot of discussion lately, so I thought it would be interesting to profile YouTube from top-to-bottom and discover the ideas behind its history, business, features, culture, sections, and phenomenon.

The generation it has captivated, let's explore YouTube.

YouTube: The Company

First, we'll start by looking at YouTube as the startup-turned-company. We'll see how it got to where it is today, how it plans to make money, the acquisition rumors that have circumvented it for the past few months, its hasty bandwidth bills, and the legal issues the company has so far had to put up with.

Background
YouTube's Founders Chad Hurley and Steven Chen. Image Credit:  AP Based in San Mateo, YouTube is a small privately-funded company with 60 employees. Chad Hurley, one of its co-founders, serves as the CEO with its other two co-founders Steven Chen, CTO, and Jawed Karim, Advisor. So far, the company has raised over $11 million of funding from Sequoia Capital, the firm who also provided initial venture capital for Google, Yahoo!, and Apple in their early days. Their tagline is "Broadcast Yourself" and this largely represents their goal.

History
History of YouTube YouTube was founded by three former PayPal employees, who, witnessing the boom of online grassroots video, realized the need for a decent service that made the process of uploading, watching and sharing videos hassle-free. They registered the domain YouTube.com on February 15th, 2005 and developed the site over the following months from a garage in Menlo Park. In May 2005 they launched in a public beta, and in November, YouTube made its debut with an $3.5 million of funding from Sequoia Capital.

To get a decent start and attract the initial crowd they were looking for — teenagers, college students, hobbyists, film-makers — they came out with a contest that promised to give out one iPod Nano to a random member each day, which ran for two months. This contest worked on a point-based system, for example one point was rewarded for signing up, one for inviting others, another one for posting a video, etc. The more the points you gained, the higher the chance of winning you had. This was a significant action that got YouTube noticed by the masses and gave it a headstart as per the signups. After all, if you knew you had a chance to winning a $250 iPod Nano just by signing up and posting that Uncle Bob's funny biking incident clip you've had on your hard-drive for the past few years, wouldn't you?

Now, after being the host (and former-host) of countless SNL segments, Superbowl ads, TV goof-ups, Anime mashups, Nobody's Watching episodes, Sporting segments, Shakira music videos, and most recently the Lonelygirl15 installments — which have managed to receive more than 90 million views in total — the result? World's fastest growing website at present, YouTube.

Business
YouTube's Business Aspect While the service is completely free for the users, the company's business model — which was put in place in March 2005 — is based on traditional banner advertising, sponsorships, partnerships and promotions, and even contextual advertising. So far, they've had numerous partnerships with traditional media companies, notably NBC and the Warner Music Group.

There has been a lot of debate over YouTube's business, with claims that it is purely based on copyrighted infringements. Billionaire Mark Cuban was recently quoted in a News.com article saying "anyone who buys YouTube is a moron." While it has only been faced with one lawsuit by Californian journalist Robert Tur over copyright infringement, it has had to take several videos down to settle matters, most notably the SNL skit Lazy Sunday over NBC's requisition.

Bandwidth Costs
YouTube Bandwidth Costs On April 2005, a Forbes article cast a spotlight on YouTube's bandwidth bills and how much of a limitation this is to its business. The article claimed that the site uses 200 terabytes a day which easily approaches to a $1 million monthly bandwidth bill. What's surprising is that this was even before its peak in June/July in which the site doubled in traffic.

Ever since it began, the company has had a stronger goal to build a community than to make a lot of money. But with the growing phenomenon, now with more than 65,000 uploads daily and 100 million videos being watched, they've had to kick-start their business plan in-order to sustain the growth.

Valuation & Acquisition Rumors
YouTube Acquisition Rumors Over the past, YouTube has been rumored to be in talks with many companies for a potential acquisition. In these, include Viacom, Yahoo!, Disney, and Sony. Most of them have turned out to be false, or have never panned out.

Recently, however, there were claims in the New York Post article (which has since been taken down) that they won't be considering any offers below $1.5 billion for a sellout. With the number of copyright infringements the company has dealt with, and the seven-digit bandwidth bills, it is unlikely that this pricetag will sustain at such a high value.

YouTube: The Service

Now, we'll look at YouTube as the service and the website. We'll explore what millions and millions of people see everyday, the unique approach they've taken toward making online video more accessible in today's culture, and the different sections of the site which form together.

RegistrationRegistering for a YouTube Account
The signup process for YouTube hasn't changed much since its launch and is fairly easy. According to their use of the site, users can join as different accounts. For general use and those who will use YouTube just to watch videos and perhaps submit the odd one, a traditional account is the way to go. For musicians, they have a specific type of Musician account, as is the case with Comedians and Directors. As the lines have cleared, they've been quick to accommodate each type of user. Also, it's worth mentioning that no matter what the account, YouTube clearly states in the terms that the uploader grants YouTube a non-exclusive access to the video to be watched on the Internet, and warns you not to infringe any copyrights.

Uploading
Uploading a Video on YouTube Just like registering for YouTube, they've made the process of uploading a video incredibly simple. After giving it a title, description, tags, category, and language, you simply select your video file — YouTube accepts almost every type there is — choose whether you want it public or private, and your video is on YouTube, accessible by millions. One of the prime factors being their success is the ease of use which they've truly taken great care in providing.

YouTube Homepage
YouTube HomepageSince day one, YouTube has used a tabbed navigation menu which can be seen at the top of every page. Their homepage contains 10 daily featured videos and one from their exclusive partner (presently NBC). Also featured are 'Active Channels' and 'Active Groups' which I'll go into later. It's noticeable that they don't have any advertising on their homepage, but choose to monetize each video alone and subsequent pages.

YouTube Directors
YouTube Directors As I stated above, users can join as different types of accounts. By signing up for a Director's Account, you essentially become YouTube's content partner. Along with a 'Director' tag, you get to co-brand your logo, link to a URL and provide your company's description on each of your videos. You also get the ability to upload videos longer than the 10 minute limit they've set, and customize a lot of fields and values. The program is aimed at amateur film-makers and online content distributors alike.

YouTube Comedians
YouTube Comedians With the growing number of amateur comedians that post videos onto YouTube, they've also made a special type of account for this user base. A comedian account is basically a lighter version of a Directors account, where, along with the 'Comedian' tag, you get the ability to customize your channel and videos. It is notable, however, that you still don't have the ability to surpass the 10 minute time constrain and post your logo to the videos.

YouTube Musicians
YouTube Musicians Like the Comedian account, YouTube also provides Musicians with their own subset of an account. Musicians can signup for one and get an account which allows to them to post their own music videos and most importantly identify themselves as musicians. Also, they can customize their channel specifically with information like "Record Label." This is great for independent and amateur musicians.

YouTube Channels
YouTube Channels A channel is YouTube's flash name for a user's profile. There are some exceptions, though. Like a MySpace profile, users can decorate their channels and insert information that describes themselves. A typical channel includes information about the user, the videos they've uploaded, their favorites, ways to get in touch with them, the subscribers to their channel, the channel they've subscribed to, bulletins, and comments. Users can subscribe to others' channels, meaning they'll be updated of any new videos from the user through the 'My Subscriptions' page, and even subscribe to specific tags, such as "Snowboarding" or "Basejumping."

YouTube Playlists
YouTube Playlists One of the neat and handy features of the site, YouTube allows users to create their own playlists to better organize their favorites collection, give other users a grouped collection of similar kinds of videos, or to simply group together a parted segment of videos. The use of this feature is completely up to the user, and it's something the YouTube community has inferred to good use.

YouTube Groups
YouTube Groups YouTube Groups is primarily the 'social' section of the site which allows users to group together as people and as their videos and have discussions on the topic. While it is widely used to hold video competitions and contests, the recent launch of Colleges has welcomed the Facebook audience to dawn upon and meet up with their peers.

YouTube Underground ContestYouTube Underground Contest
Currently the very hot section of the website, the YouTube Underground Contest is a contest they've held to find the best amateur, independent, and unsigned musician out there who can write, play, and make a good music video. The community will vote on the best one, and four grandprize winners will basically get their start in the industry — from being featured on ABC's Good Morning America and thousands of mobile phones via Cingular Video to a chance to perform live, and all the professional equipment they can obtain. The contest starts on October 2nd and finishes October 18th.

YouTube APIs & Codes
A key part in YouTube's phenomenon and growth (see comments below), this is something they've been credited to since day one. With YouTube, it's possible for anyone to embed a video onto a webpage, MySpace profile, or blog by simply obtaining the code and copying/pasting it onto an HTML file. With this model, not only does the power of user-generated content arise, but the other side of the story — user-promoted content — accompanies it. What's more, there's a whole lot of things for the developer community to build upon with YouTube's API set.

Summary

One of the great things about YouTube is that the concept — uploading, viewing and sharing videos — appeals to nearly every age, race, and nationality. Their growth has been truly phenomenal and they remain one of the prime examples of success in Web 2.0. Used by millions everyday, they’ve made an exceptional name for themselves in this new content distribution model and with certainly no doubt in my mind, will go on to be one of the companies that change the way the world watches content.

YouTube Homepage

[tags]YouTube, Online Video, Social Networks, Startups, Profiles[/tags]

135 Responses to “YouTube - The Complete Profile”

  1. [...] (via rev2) Posted by justin.smith Filed in video [...]


  2. [...] read more | digg story [...]


  3. mark — 02/10/06

    Godo insightful article! You Tube sure is a great past time!


  4. meh — 02/10/06

    great article. any insights on the technology they are using?


  5. [...] Rev2.org has done a great job profiling YouTube, from the get go. The profile discusses bandwidth costs (Forbes estimated at $1 M per month), possible valuations and a whole lot more of insight to YouTube. YouTube ShareThese icons link to social bookmarking sites where readers can share and discover new web pages. [...]


  6. nine — 02/10/06

    thanks for posting this. lets hope they stay alive.


  7. [...] link [...]


  8. jacob — 02/10/06

    You are aware they have always been one of adbrite’s largest ad buyers
    heh
    they advertised a shitload when they started via adbrite


  9. [...] YouTube - The Complete Profile @ rev2.org [...]


  10. [...] What’s this youTube, a profile  [...]


  11. Behind YouTube……

    In-depth profile on YouTube that discusses their background, history, business model, bandwidth costs, valuation & acquisition rumors, service, uploading, the directors, comedians, channels, play lists, groups and contests….


  12. free internet tv is it true? — 02/10/06

    YouTube is definitely an Internet meme, everyones just waiting to see whether it flops under the pressure (and sells out to a company that will eventually destroy it) or if it will be crushed by a competitor site.


  13. Jo Blow — 02/10/06

    Great article but not enough focus on the sharing component of YouTube. It’s the ability to let other sites embedded videos that I think drove their traffic.


  14. Youtube should become a public company and it has a place for its independent existence.


  15. [...] YouTube The Complete Profile [...]


  16. [...] Read more here… [...]


  17. JimmyD — 03/10/06

    I agree with Jo Blow, embedded content, that code snippet that could put your video or any video you want anywhere on the web is one of the biggest wins of youtube in my opinion.


  18. Sid Yadav — 03/10/06

    Thanks to all your lovely comments everyone, really appreciate it. :-)

    JimmyD and Jo Blow, I took your suggestions and added a new “YouTube APIs and Codes” section.


  19. A Welsh View — 03/10/06

    YouTube - The Complete Profile…

    Rev2.org have posted an in-depth profile of YouTube that covers their history, how the service works and the site’s staggering bandwidth bills….


  20. soulcreation — 03/10/06

    [...] Linkdump #4 YouTube - the complete profile: in-depth profile of YouTube. Rise of the web’s social networks: the interaction between web-users has grown dramatically, spawning a new generation of networking sites. Beta Sites and Web 2.0 chart: asit says. Great list. A thousand tomorrows: sharing insights concerning the possible futures that await us and the different ways in which people envision them. PhishTank: join the fight against phising. Who we are: how to stay popular in an age of zero talking. suspiciousminds’ guide to quality coffee drinking: suspiciousminds’ coffee experiences during those meetings and visits. (A tip that he shares with the world and that I can only endorse: Be a man and don’t drink decaf. And for Christ’s sake don’t put sugar in your coffee!) [...]


  21. memor.ia blog — 03/10/06

    [...] YouTube - The Complete Profile - rev2.org (tags: youtube profile vc memori.us) [...]


  22. [...] This excellent article from Rev2 about the rise of Web 2.0 supremo Youtube is a good insight. [...]


  23. Akkam’s Razor — 04/10/06

    [...] YouTube - The Complete Profile - rev2.org (tags: youtube web2.0 profile business community video vc) [...]


  24. [...] In-depth profile on YouTube that discusses their background, history, business model, bandwidth costs, valuation & acquisition rumors, service, uploading, the directors, comedians, channels, play lists, groups and contests.read more | digg story [...]


  25. [...] 4th, 20060 Comments » SlideShare is a new service that launched today in private beta which aims tobe the YouTube for online presentations and slides. I’m not sure how quickly they are accepting new invitation requests, but I was able to get one and have 10 others remaining. If you’d like one, make a comment or e-mail me with the subject “SlideShare Invite” — if you’re the first 10, you’ve got yourself an invite. [...]



  26. [...] 5th, 20060 Comments » One of the problems with online video, mainly speaking on YouTube et al, is that there’s somuch of it — already on the site and the new stuff coming out each day — it gets harder to aggregate what’s good, what’s hot, what’s a fad, what’s funny, not to mention a little overwhelming. TVGuide solved this problem with network television when it came out in 1953, and Mobunga, which launched today in public beta, aims to do the same to online video — podcasts, vidcasts, TV shows, shortfilms, trailers, movies and clips. [...]


  27. [...] rev2.org - a site dedicated to web2.0-news - didn’t come to my attention until their recent - very extensive - company-profile of YouTube. covering the company’s history, lack-of-a business-model, legal threats and technological background (don’t get me wrong, this is really an interesting read!), the article makes me crave for more in-depth profiles on other companies (compare this MySpace-roundup, published on Valleywag)! [...]


  28. [...] * Alles über die Firma YouTube.   [...]


  29. [...] Following on a report by Michael Arrington a few hours ago, WSJ reports online video sensation YouTube may indeed be in talks with Google for a rumored $1.6 billion acquisition. Such rumor-fads are generated all the time — and usually turn out to be false — but for some reason I have a gut feeling this isn’t one of those. [...]


  30. [...] 9th, 20060 Comments » Since day one, YouTube has lived on a fully community-oriented model where there isn’t anymoney involved at the user level. This is about to change with a new service called GreedTube, which seems to be an ‘unofficial spinoff’ of YouTube promising to monetize your videos with AdSense and letting you keep a share of the earnings. [...]


  31. [...] So the rumor was true. Google has acquired YouTube for $1.65 billion in stock. Officially closing in the fourth quarter, YouTube will continue to remain and operate as a separate company in San Bruno, California with its 65 employees. I’ve had an very-rough insider (fellow Google employee) tell me that Yahoo! was also in the bidding war till the end. Read the official announcement here. [...]


  32. [...] The popular video sharing website YouTube has seen it’s share of investigations lately in a possible buyout rumours. Studies were published about YouTube’s resources in regards to their funding and recurring costs but that didn’t stop the Google monster from gobbling them up. Google has announced it’s purchase of the website yesterday for a whopping $1.65 billion US. [...]


  33. [...] Para los que quieran saber más sobre Youtube.com haced click aqui [...]


  34. [...] 21st, 20050 Comments » All right, it’s getting to us. First OurMedia now YouTube, a new startup which focuses onletting users upload (upto 100mb), tag and share. I’m impressed, I have to admit. One of the reasons I don’t like OurMedia is because of the Internet Archive fact — it’s just a huge pain in the ass for me to create two accounts in two separate places then connect them to upload a video. I did try, and I failed. But, YouTube avoids this and I actually succeeded (a short-film I made with my nephew). [...]


  35. [...] Anyhow, getting back to what this post is really meant to be about, I have to admit, even though I predicted 2006 = AOL’s year, I would’ve never ever predicted Truveo would be the next on the line (it’s one of those products I used a lot and then forgot about). Congrats to the guys at Truveo. I love them for obvious reasons and can’t wait to see what AOL does with them. YouTube, anyone? Tags [...]


  36. [...] Yahoo!-Digg Rumors Officially Denied (Kevin Rose): No, they’re not doing it… I posted about this yesterday. Because Kevin lightly denied these in the comments of the digg post, not many people took it seriously but now that he’s officially denied it on the digg blog, it’s final. It ain’t happening. Which stupid person makes these? A few weeks ago it was Technorati, few days it was YouTube, today Digg. Why? Is it just that these companies are so good, that, like their peers, we don’t want to just predict they’re next. We want to make it happen. I can certainly point fingers here, but since I don’t want to get into trouble, I’ll hold that thought. [...]


  37. [...] 16th, 20060 Comments » In response to the whole YouTube juncture that’s happened in the last week, MySpace made acouple of slight but relatively significant changes over the weekend that’s very much likely to have an effect on YouTube’s popularity. [...]


  38. [...] 21st, 20060 Comments » Om Malik on YouTube, well, the people who use YouTube, doing highlights of games (such as theIndia-Pak cricket). Quite impressive, I wasn’t aware of this myself. Lawsuit, anyone? Tags [...]


  39. [...] 1st, 20061 Comment » This has got me thinking. In the end, what’s success for a Web 2.0 company? I don’tthink it’s just one thing, but a process; a rundown list, in steps. Some get to number 3, number 5, number 7, some hit number 8 (which is rare; YouTube is the most recent one I can think of), some don’t even reach step 2, if not, step 1. [...]


  40. [...] Supply your tracker a name – I’m tracking YouTube so you can guess the name of mine. You give it the kind of content it will be – in my case ‘Technology (news & blogs)’ – and go onto the next step to pick your sources. If you don’t see a source that you know of in there for the appropriate category, just add one. [...]


  41. [...] 28th, 20060 Comments » Marc Andreessen’s pet-project Ning which lets users clone, customize, create andshare their own web applications has just launched 3 new social websites which it hopes will bring in a more mainstream audience than the geeky early adopter/programmer crowd it’s so far managed to attract. The three new social websites include Ning Videos, a YouTube clone, Ning Photos, Flickr clone, and Ning Group, a social network. Users can take these applications and make it their own, clone it, customize it, and do whatever they like. [...]


  42. [...] Eyespot is most popular for its web-based video editing and remixing technology. While it isn’t nearly as big as YouTube, Grouper, and Jumpcut — which have all managed to get acquired by notable companies — it’s home to an interesting community of creative mixers and mashers. [...]


  43. [...] Page Summary: This was a significant action that got YouTube noticed by the masses and gave it a headstart as per the signups. Most of them have turned out to be false, or have never panned out. According to their use of the site, users can join as different accounts. For general use and those who will use YouTube just to watch videos and perhaps submit the odd one, a traditional account is the way to go.read more | digg story [...]


  44. carlos — 29/10/06

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  45. [...] YouTube  fue lanzado en febrero del 2005, lo que siginifica que a tan solo 19 meses de lanzamiento ha convertido a sus fundadores en millonarios. ¿Alguna duda de que internet pueda generarte ingresos y aún asegurar tu futuro? [...]


  46. [...] I think this is the beginning of something cool. I would easily put the idea with that of sites like MyBlogLog, YouTube, Digg and others. Although completely unrelated, they have a few things in common: they’re very simple, they’ve gained users very fast, and they’re very controlled by the users. [...]


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  48. [...] In the next link you can read The history of Youtube [...]


  49. ishika — 16/12/06

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  50. ishika — 16/12/06

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  51. [...] The Complete Profile [...]


  52. [...] (rev2.org) One of the companies that would easily classify as a poster-startup for Web 2.0 is YouTube. Since its launch in February 2005, it’s managed to attract crowds, cross milestones, create fads, top lists, and even get a mention at this year’s Emmys! More… [...]


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  55. [...] YouTube - The Complete Profile - rev2.org A complete biography on YouTube, the 60 employee startup that has managed to … and suggestions I received, I’ve added a new “YouTube APIs and Codes” section. … [...]


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