Robert Scoble has a blog post entitled Google to Yahoo and Microsoft: the $1.65 billion was worth it which contains the following excerpt
Ahh, now you all understand what I meant when I said YouTube is a moat, not a revenue generator. By putting YouTube results into Google’s main engine Google ensures it will have better searches than Yahoo and Microsoft (who were, truth be told, getting damn close to matching Google’s quality). And it does it in a way that Yahoo and Microsoft will not be willing to match. Seriously, can you see an executive at Microsoft advocating putting YouTube videos into Microsoft’s search results? I can’t.
Anyway, Google just distanced themselves from Yahoo and Microsoft. And they just provided a way to monetize YouTube videos.
I love Google’s strategy. It continues to mess with Microsoft’s strategy. Microsoft still treats each team as something that must make money. Google doesn’t do that. They didn’t care one bit that YouTube didn’t have any revenues. They knew that there’s other ways to make money off of YouTube than to force YouTube to monetize on its own.
Interesting analysis, too bad it doesn't pass muster when you look at the facts. So let's do that
Google didn't need to spend $1.65B on YouTube to integrate their search results. An existence proof of this are video search startups like Blinkx and Dabble that index video from practically every major video source on the Web including YouTube and definitely didn't spend billions doing so. Secondly, Google has already announced that they'll index videos from sites they don't own. Does Robert believe they plan to buy every site whose video content they'll index?
If Google doesn't care about monetizing YouTube why did the company transfer Shashi Seth to YouTube to work on monetization and what about the ads within videos they prototyped a few days ago?
A better analysis of Google Universal Search
is that it is the ultimate manifestation of the Features, Not Products initiative
. Google had too many search verticals with no way for users to find them (I used to do Google searches for Google Music Search
before I could use it) and now they've remedied that in one fell swoop. Just look at what their users had to deal with before they changed the search engine results page
In case you were wondering the even more link goes here