{"id":474,"date":"2006-08-23T08:42:33","date_gmt":"2006-08-23T12:42:33","guid":{"rendered":"http:\/\/www.mathewingram.com\/work\/2006\/08\/23\/is-youtube-worth-2-billion-now\/"},"modified":"2006-08-23T08:42:33","modified_gmt":"2006-08-23T12:42:33","slug":"is-youtube-worth-2-billion-now","status":"publish","type":"post","link":"https:\/\/mathewingram.com\/work\/2006\/08\/23\/is-youtube-worth-2-billion-now\/","title":{"rendered":"Is YouTube worth $2-billion now?"},"content":{"rendered":"<p>So Sony Pictures has <a href=\"http:\/\/www.grouper.com\/about\/pressrelease_sony.aspx\">gone and bought<\/a> Grouper, the online video site, for $65-million (U.S.). Okay &#8212; hands up, anyone who has heard of and\/or used Grouper, apart from reading about it at TechCrunch or Mashable or some other Web 2.0 site. Pretty much what I figured. Although it is a half-decent looking service from what I can tell, it is one of half a dozen video-sharing solutions out there, and is unremarkable other than the fact that it requires you to download a standalone Windows app (a negative in my view) and it has a peer-to-peer aspect to it (Note: In the comments below, Sean says the download is only required if you want to share videos privately).<\/p>\n<p>According to the math that TechCrunch <a href=\"http:\/\/www.techcrunch.com\/2006\/08\/22\/wow-grouper-sells-for-65-million\/\">came up with<\/a> on a per-user basis, using ComScore data, Sony appears to be paying $70 to $120 per unique visitor (and that&#8217;s visitor, not user), compared with other recent deals for iFilm and Atom\/Shockwave at about $15 to $20 a unique visitor. The one caveat, of course &#8212; as with anything that involves <a href=\"http:\/\/www.siliconbeat.com\/entries\/2006\/08\/10\/web_stats_are_broken_so_youd_better_have_brass_knuckles.html\">traffic metrics<\/a> &#8212; is that ComScore&#8217;s half a million uniques is dramatically lower than the company&#8217;s own estimate of 8 million. If you use Grouper&#8217;s figure, the per-unique is about $8.<\/p>\n<p>Doing some quick math, TechCrunch comes up with a figure of $2-billion for YouTube, which will make co-founder Chad Hurley happy, since the highest we&#8217;ve seen so far is $1-billion, a figure that more or less came out of thin air (using ComScore&#8217;s traffic from June and the multiple of $15 to $20 per unique, YouTube would be worth about $300-million). Does that make any sense? Maybe to a desperate movie studio or entertainment conglomerate it would (which Om points out Sony <a href=\"http:\/\/startups.gigaom.com\/2006\/08\/23\/sony-hooks-up-with-grouper\/\">most certainly is<\/a>), but that remains to be seen.<\/p>\n<p>As for what Sony has in mind for Grouper, the talk is about pay-for-downloads and so on, which in typical Sony fashion will no doubt be low-quality and all crapped up with DRM. Davis Freeberg <a href=\"http:\/\/davisfreeberg.com\/2006\/08\/23\/grouper-outsmarts-sony-in-65-million-buyout-negotiation\/\">congratulates Grouper<\/a> for pulling one over on Sony, while Duncan Riley <a href=\"http:\/\/duncanriley.com\/2006\/08\/23\/sure-its-a-storm-but-theres-lots-of-bubble-activity-out-on-the-sea\/\">says<\/a> it&#8217;s just a matter of time before Sony render Grouper &#8220;so unworkable, unusable and undesirable that it will die an inglorious death.&#8221; <\/p>\n<p>Rafat at PaidContent <a href=\"http:\/\/www.paidcontent.org\/sony-buys-grouper-for-65-million\">says<\/a> the site has a solid management team, and maybe Sony deserves some credit for realizing when they need help, while Cynthia at IPDemocracy says it&#8217;s about <a href=\"http:\/\/www.ipdemocracy.com\/archives\/2006\/08\/23\/index.php#001871\">speed to market<\/a>. Rafat and Cynthia are very kind  \ud83d\ude42<\/p>\n<div class=\"syndication-links\"><\/div>","protected":false},"excerpt":{"rendered":"<p>So Sony Pictures has gone and bought Grouper, the online video site, for $65-million (U.S.). Okay &#8212; hands up, anyone who has heard of and\/or used Grouper, apart from reading about it at TechCrunch or Mashable or some other Web 2.0 site. Pretty much what I figured. Although it is a half-decent looking service from &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/mathewingram.com\/work\/2006\/08\/23\/is-youtube-worth-2-billion-now\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Is YouTube worth $2-billion now?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crsspst_to_mathewingramblogwordpresscom":false,"mf2_syndication":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-474","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts\/474","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/comments?post=474"}],"version-history":[{"count":0,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/posts\/474\/revisions"}],"wp:attachment":[{"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/media?parent=474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/categories?post=474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mathewingram.com\/work\/wp-json\/wp\/v2\/tags?post=474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}