Google purchased YouTube in 2006 for 1.65 billion. In about 200 ...

[londonang]

Google purchased YouTube in 2006 for 1.65 billion. In about 200 words, outline reasons that Google would have wanted to acquire a site such as YouTube and describe the benefits that the company obtained from its purchase.

Question 2

Using your favorite search engine or your library, review the Yahoo acquisition of GeoCities and its subsequent operation and closure of that virtual community. In about 100 words, outline what Yahoo might have done differently to make GeoCities successful. In formulating your answer, consider what GeoCities users wanted from the site and what issues Yahoo encountered in delivering those services.

[juicepod]

Answer to Question 1

Possible reasons might include:

• Popularity: At the time of acquisition, YouTube was ranked by Alexa as the 10^th most popular Web site. Google Video could not compete.


• Usability and Stickiness: According to Hitwise, the average session time of the YouTube user was 18 minutes versus 9 minutes for the average Google Video user.

Advertising: The potential existed for Google to place ads next to the 100 million video streams that users watched each month.

Answer to Question 2

• Copyright laws: The enforcement of new copyright rules caused loyal followers to defect in droves.


• Advertising: Geocities was averse to accepting advertising.


• Better business model: Geocities had no trouble attracting users but could not monetize the experience.


• Social networking sites need to constantly evolve: Geocities remained stagnant, missing out on opportunities to implement features such as search and profiles.

[londonang]

Gracias!

[Jossy]

Wow, this really help