Morgan Stanley told clients Feb. 5 that more disclosure about YouTube, as well as the smaller businesses lumped together on its balance sheet as “Other Bets,” could help investors see more value in the sum of these parts. Alphabet, which now has a market capitalization of roughly $708 billion could actually be a $1 trillion company, the bank’s analysts said.
YouTube began as a venture capital-funded technology startup, primarily from an $11.5 million investment by Sequoia Capital and an $8 million investment from Artis Capital Management between November 2005 and April 2006. YouTube's early headquarters were situated above a pizzeria and Japanese restaurant in San Mateo, California. The domain name www.youtube.com was activated on February 14, 2005, and the website was developed over the subsequent months. The first YouTube video, titled Me at the zoo, shows co-founder Jawed Karim at the San Diego Zoo. The video was uploaded on April 23, 2005, and can still be viewed on the site. YouTube offered the public a beta test of the site in May 2005. The first video to reach one million views was a Nike advertisement featuring Ronaldinho in November 2005. Following a $3.5 million investment from Sequoia Capital in November, the site launched officially on December 15, 2005, by which time the site was receiving 8 million views a day. The site grew rapidly and, in July 2006, the company announced that more than 65,000 new videos were being uploaded every day, and that the site was receiving 100 million video views per day. According to data published by market research company comScore, YouTube is the dominant provider of online video in the United States, with a market share of around 43% and more than 14 billion views of videos in May 2010.
“The largest fucking YouTuber on the planet made a video that got 7 million views in 7 hours,” Hasan Piker, a commentator for the left-wing web series The Young Turks, said on his own YouTube channel. “That seems like a fucking big problem, especially if the majority of his viewers are 14-year-old kids who are going to go over to this fucking channel and start watching this guy’s cartoon videos. ... [E;R] has an interest in red-pilling people and turning them over to Naziism or to Fascist ideology. How do you think this will play out when PewDiePie hypes this guy’s fucking channel?”
If streaming video followed the broadcast model, YouTube—in partnership with governments around the world—could also subsidize research into creating educational content specifically for YouTube, and into how best to deliver it to children. The company could invest in research to develop the best quantitative signals for educational programming, so it could recommend that programming to viewers its algorithm believes to be children. It could fund new educational programming, just as broadcasters have been required to do for decades. (“We are always looking for ways to build the educational content offering in the app in a way that’s really fun and engaging for kids,” Ducard said.)
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YouTube allows users to upload, view, rate, share, add to favorites, report, comment on videos, and subscribe to other users. It offers a wide variety of user-generated and corporate media videos. Available content includes video clips, TV show clips, music videos, short and documentary films, audio recordings, movie trailers, live streams, and other content such as video blogging, short original videos, and educational videos. Most of the content on YouTube is uploaded by individuals, but media corporations including CBS, the BBC, Vevo, and Hulu offer some of their material via YouTube as part of the YouTube partnership program. Unregistered users can only watch videos on the site, while registered users are permitted to upload an unlimited number of videos and add comments to videos. Videos deemed potentially inappropriate are available only to registered users affirming themselves to be at least 18 years old.