The Power of Internet Video

Update: For anyone still unsure of the growth of Internet video checkout the announced sale of Metacafe.

Here is a list of 61 different internet video sites.

Why do I put up this list? Well, a lot of people have been asking me recently about the recent price of the Google YouTube deal. They cannot fathom why a search engine would purchase an video site for $1.65 billion dollars.

My answer is first to try to change the perspective of their question. Instead of wondering why a search engine is buying a video site try to understand that it is really a media company buying Internet video.

What value would you put on owning the largest portal for videos on the Internet and owning the rights to monetize on it? (I would say a heck of a lot more than $1.65 Billion)

Now try to imagine the marketplace for online video and how much it will grow in 2007 and beyond. I would say there is room for some healthy competition. Hence the new 61 video portals.

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