understanding the psychology of behavior

Whether you (or content creators) like it or not, YouTube now has firmly established a very real competitive advantage against other video sites. A great article in Tech Crunch sums up the rating numbers, and those numbers are impressive. YouTube’s market share is large, and gaining especially with Google’s understanding of the web and web users.

Later on this year YouTube should be placing video ads within their ‘partner’ videos, and leveraging that huge market share and user base. After that moment the dynamic of the web will be interesting. And Google will have a second very big trick pony.

Looking at Google in the most simplistic terms you have a company with a clear competitive advantage in search (as its constant gain in market share proves) and competitive advantage in video. Add a very good valuation in that mix, and you can see the compelling potential.

(Note: Google’s PEG is about 1, with estimates of 35% 5yr growth rate, which is a bit high. Especially since the video ads are not yet established.)

This entry was posted on Saturday, June 30th, 2007 at 1:33 pm and is filed under stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.