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Google/Youtube problems

>From the latest csco prime presentation it appears it offers similar
functionality in one of the modules that one can buy to it so that providers
can have a sneak peak on these type of data in order to sell them to third
Though I wouldn't even know whom to sell such information 
Nor have I been hit by a targeted advertisement, yet

-----Original Message-----
From: Leo Bicknell [mailto:bicknell at ufp.org] 
Sent: Monday, November 19, 2012 3:30 PM
To: nanog at nanog.org
Subject: Re: Google/Youtube problems

In a message written on Mon, Nov 19, 2012 at 03:59:22PM +0200, Saku Ytti
> What I'm trying to say, I can't see youtube generating anywhere nearly 
> enough revenue who shift 10% (or more) of Internet. And to explain 
> this conundrum to myself, I've speculated accounting magic (which I'd 
> frown
> upon) and leveraging market position to get free capacity (which is 
> ok, I'd do the same, had I the leverage)

I suspect you're thinking about revenue in terms of say, the advertisements
they run with the videos.  I beleive you're right, that would never pay the

Consider a different model.  Google checks out your gmail account, and
discovers you really like Red Bull and from your YouTube profile knows you
watch a lot of Ke$ha videos.  It also discovers there are a lot more folks
with the same profile.  They can now sell that data to a marketing firm,
that there is a strong link between energy drinks and Ke$ha videos.

GOOG-411 - building a corpus of voice data for Android's voice recognition.

ReCaptcha - improving visual recognition for their book scanning process.

Most of the "free" services are simply the cheapest way to get the data
needed for some other service that can make much more money.  It may seem
weird to write off all the costs of YouTube as data aquisition costs, but
there's far more money to be made selling marketing data than ads against
streaming videos...

       Leo Bicknell - bicknell at ufp.org - CCIE 3440
        PGP keys at http://www.ufp.org/~bicknell/