Why Cuban is right about YouTube September 18, 2006Posted by sdpurtill in Business, Flash, Technology.
Mark Cuban recently posted The Coming Dramatic Decline of YouTube, and I must say… I am in total agreement.
I think the main two reasons why YouTube is destined for failure is because 1) they don’t have the infrastructure that Google does and 2) they don’t have the ability to grow internally as fast as they are on the outside (they can’t hire fast enough)
My first point is self explanitory: Google has much deeper pockets and hundreds of thousands of servers around the world. Google is the fastest most reliable CDN in the world (correct me if I’m wrong). Online video is in its beginning stages still, and it’s going to take a while for people to realize that video quality and dl speed matters more than upload speed and amount of content.
My second point: they can’t hire fast enough. They are huge. They need to sell right now to a company that knows what how to deal with such fast growth. Last time I checked, they had like 20 employees and were working above a pizza parlor. Um… Yeah. Right now, going with 37signals motto “less is more” isn’t really going to help. YouTube makes enough money every month that it won’t be much more overhead by hiring on 1,0000 employees to make their site better.
I hope to look at this post in about two years and see if I’m right. What do you think ?