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YouTube Case

YouTube is one of the most popular video-sharing websites in the World Wide Web. The platform of YouTube was developed in 2005 allowing people from all over the globe to not only watch videos, but also to upload and share their own videos for other YouTube subscribers to see. Since YouTube was made openly availably for everyone interested in sharing their videos online, the site has become one of the online producers of both old and current videos circulating around the world. In the website of YouTube, the virtual company has revealed how it is “empowering them [YouTube subscribers] to become the broadcasters of tomorrow.” (YouTube LLC, 2009)

This particular role or function of YouTube in the virtual community has impacted the level or rate of competition between the company and news sites in the World Wide Web such as MSNBC.com, CNN.com, FoxNews.com, Reuters.com, and such.

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With the millions of users using YouTube as compared to those who subscribe to online news sites as mentioned above, and also millions of opportunities for ordinary people to broadcast video clips, air opinions, and watch videos, online news sites are challenged by their inability to offer breaks for the people to become engaged in the news-making and broadcasting process. YouTube empowers the people to become actively engaged in the news-making process which is a great motivation for the people to tune in to news from the past to present in YouTube.

In addition, YouTube does not choose which news to broadcast, which makes it a neutral and unbiased source of information. In terms of the revenue that the companies obtain from advertisers, YouTube has raised the bar due to the millions of viewers and subscribers that visit the site every day. Market advertisers took advantage of this great opportunity by engaging in video advertising that will be facilitated by the platform of YouTube. (Springer, 2007) Apparently, the technology of video sharing and advertising is not commonly used in online news sites, which sets the difference between their platform with that of YouTube.

Under these pretexts, online news sites need to retransform their strategic initiatives in order to compete with the platform of YouTube. In terms of the context of business, online news sites need to generate more revenue from online processes and operations by means of converting opportunities to sales. In this case, online news sites need to adapt the technology in which the platform of YouTube is based on – that is, the Web 2.0. (Breakenridge, 2008)

Since the competition among online sites has been fuelled by what they can offer to online users, and big online companies have realized the importance of video sharing as a means of promoting interactive and lively connection with its audience and market advertisers, online news sites need to match the competitive advantage of YouTube. Through the integration of online news sites with the Web 2.0 as a form of business technology, the favorability of online news sites in the market are guaranteed.

On the road to increasing business margin and decreasing cost, integrating the Web 2.0 to online news platforms allows companies to reduce capital cost which consequently widens its reach to users due to consumer reduced costs. In addition, the Web 2.0 enables online news sites to establish a comprehensive network of online users which will form their market base leading to increased competition with YouTube in terms of market popularity. In terms of increasing revenue, online new sites will become appealing to market advertisers due to the availability of the Web 2.0 platform.

Aside from YouTube, market advertisers will find it rewarding to conduct business deals and partnerships with online news sites by initiating video and other forms of online media advertising supported by Internet news companies. (Shuen & Shuen, 2008) Overall, the strategic initiatives of online news sites should be geared towards making changes in their online platform in order to generate revenue primarily from market advertisers, and then from online users.

On the other hand, online news sites should implement process improvements that are founded on the integration of the Web 2.0 as a business technology to the platform of online news sites, increasing their capability to compete with YouTube, and in the process, increase their business margin and decrease operational and consumer cost.

References

Breakenridge, D. (2008). PR 2.0.  Indianapolis, IN: FT Press.

Shuen, A. & Shuen, A. A. (2008). Web 2.0: A Strategy Guide. Sebastopol, CA: O’Reilly.

Springer, P. (2007). Ads to Icons: How Advertising Succeeds in a Multimedia Age. London,    UK: Kogan Page Publishers.

YouTube LLC. (2009). Company History. Retrieved February 23, 2009, from YouTube LLC.   Website: http://www.youtube.com/t/about

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