Youtube Logo – YouTube is a website where users can upload and share videos . It was created by three former employees of PayPal in February 2005 . 4 in October 2006 was acquired by Google Inc. in exchange for 1,650 million U.S. dollars , and now operates as one of its subsidiaries .

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YouTube uses an online player based on Adobe Flash (although it can be a player below , which incorporated YouTube shortly after the W3C submission and which Web browsers major withstand the standard HTML5 ) to serve content. It is very popular thanks to the possibility of hosting personal videos easily. Hosts a variety of movie clips, TV shows and music videos . Despite rules against uploading videos to YouTube of copyright , this material exists in abundance as well as content amateur and videoblogs . Links to YouTube videos can also be embedded in blogs and personal websites using API or some code embedding HTML .

YouTube Inc. was founded by Chad Hurley , Steve Chen and Jawed Karim in February 2005 in San Bruno , California . They met while working at PayPal , Chen and Karim as engineers, and Chad as a designer. According to Hurley and Chen , the idea arose Youtube at the difficulties experienced in trying to share videos taken during a party in San Francisco . This story has been considered a very simplified version, and Chen has admitted that this idea can be promoted by the need to present a simple story to the market. Karim said that the party never happened, and that the idea of video sharing Internet was his. His colleagues have stated that the party did happen, and that the original idea was to create a Karim dating site where people could qualify based on their videos. Karim admits having been influenced by a dating site called HotorNot.com (‘Hot or Not?’), where users could upload pictures of themselves, which were then rated by other users.

The domain was activated on February 15th of 2005 , and 23 April was the first video uploaded, Me at the Zoo (‘I at the zoo’). In the spring YouTube went online. However, the developers quickly realized that users were carrying all sorts of videos, leaving behind the original idea. Traffic soared as people began to place links on their websites YouTube MySpace . The rapid growth of the site attracted to Time Warner and Sequoia Capital , which invested in it. After that, in October 2005, the company Nike placed a spot starring Ronaldinho , large companies began to be attracted by YouTube. Only in 2005, Sequoia had to invest 8.5 million U.S. dollars on the site.
By December 2005 YouTube pages were visited about 50 million times a day. However, after the music video Lazy Sunday , originally broadcast in the showSaturday Night Live , was loaded to YouTube, visits shot up again to reach the 250 million daily views. 7 By May 2006, according to Alexa. com , YouTube reached 2000 million views per day, and by mid-August had reached 7 billion mark several times, seven also had become the tenth most visited site in the United States . At that time, the New York Post estimated that YouTube would be worth between 600 and 1000 million U.S. dollars. MySpace.com andGoogle released their own versions of YouTube, without success.

In October 2006 YouTube’s offices remained in the San Mateo County , located on the second floor of a building, and had about 60 employees. An executive at Universal Music Group recently announced that “YouTube owed tens of millions of dollars” for violation of copyright. Mark Cuban , co-founder ofBroadcast.com , a service of Internet radio purchased by Yahoo in 1999 had declared a month before that “only a fool would buy YouTube for potential legal problems that face.” 8 However, the site owners had already committed to Warner Music to improve service, so they could more quickly detect when a video of his property was uploaded to the site. However, earlier this month published a report in the Wall Street Journal indicating that Google would buy YouTube for 1.6 billion dollars. This information was initially denied by YouTube and Google, which described it as rumors.

That same month, Google bought YouTube for 1.65 billion dollars in stock. At the time of purchase 100 million videos on YouTube were viewed and 65 000 new videos were added daily. In addition, some 72 million people visiting per month. Hurley and Chen held their positions, like the 67 employees currently working in the company. In the earlier days, YouTube has signed two agreements with Universal Music Group and CBS , and Google has signed agreements with Sony BMG and Warner Music to distribute music videos.

By June 2008 38% of videos viewed on the Internet came from YouTube, the closest competitor came to represent only 4%. Although Google did not reveal the figures, it was estimated that the site generated 200 million U.S. dollars this year. In that month, an announcement on the YouTube home page daily cost $ 175,000, and the client must commit to spending an additional $ 50,000 in ads on Google or other pages on YouTube. However, because the content of the vast majority of videos on YouTube did not attract advertisers, ad prices collapsed. YouTube proceeded to pressure the television and film studios to produce quality video content and featured channels offered, where they could submit announcements of new releases of movies and television clips. He also came to place ads before the start of a video, but then discovered that 70% of users leave the site before it was over.

YouTube’s relationship with television production companies and film has been mixed. Viacom lawsuit against YouTube continues billion by 1000, which began in March 2007 for alleged massive violation of copyright . On the other hand, Disney signed in late March 2009 an agreement with YouTube, allowing the transmission of short videos of the ABC and ESPN . Disney may display ads on YouTube with this treatment. In April 2009, Google announced that YouTube signed alliances with some studies ofHollywood for the site could show television shows and full movies. In January 2010, YouTube launched Rentals, a service of online video store with movies that are full can be seen instantly after payment.

In recent years, Google has not yet been effectively convert high traffic YouTube in earnings, the company has recognized this, but has refused to provide figures.According to an article in Forbes Magazine , YouTube will generate $ 240 million in 2009 , remaining well below the $ 710 million in operating costs of the site. According to an analyst at Credit Suisse , YouTube would be taking losses for 470 million U.S. dollars in 2009, however, other companies estimate losses 174.2 million.

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