What’s it take to get to the Crazy Sunday inflection point, the point where you are serving 100 million videos a day and have 20 million unique visitors a month. Well first off, it seems there is consensus that you need a ‘strange attractor’ catalytical event. In YouTube’s case that was Lazy Sunday.
Secondly, you need some pedigree. Investment from a tier one VC like Sequioa will do that for you. Not because they are Sequioa per se, but because it creates great buzz build. The press cottons onto it and starts techwagging, the blogosphere buzzes and joevideo comes over to visit and brings along his mates. Viola, a brand is born.
Like everything born on the Internet is can grow very quickly, and it can die very quickly. One of the most asked questions about YouTube is what’s their business model? Their burn rate continues to rise with their popularity and currently it would seem is not being matched by revenue growth.
Sure they may simply be born to flip into the hungry mouth of a mega acquirer, aka Google, but for me the big question is whether they can migrate to a tiered content model (and keep their community). What do I mean by tiered content? Users paying for top quality video produced by brand names (either Hollywood built or YouTube built), and higher cost for ads on the Top 100 videos.
One thing is certain, YouTube is simple to use. My eight year old son and his friend shot their first video on Saturday night and posted it on YouTube the next day with ease. Now that was a real crazy Sunday.