YouTube Story

1. KAMALAKKANNAN G
DEPARTMENT OF MANAGEMENT STUDIES
PONDICHERRY UNIVERSITY
What goes from 0 to 1,650,000,000 in 12 months?
Every day we face upsets on our life. Are these upsets doing something on us? May be
not because we get used to it. When we are not tolerating enough to accept the upset which
we face every day by getting rid of it, our life might turn around the way in which the people in
the world may turn around and see you. This is the story of such people who stood as example
of above said statements.
There existed a friend trio who are very close as like every friends do. Chad Hurley, Steve Chen
and Jawed Karim are three active Vicenarians (referred CSJ). They were employed in PayPal, an
e-commerce enterprise allowing online money transfers and payments.
Early 2005
As a part of their job, video has to be sent to their client about transaction, guides and
other required official recordings through the e-mail. They faced problem frequently on their
desk for sending videos via e-mail (The limit up to which we could send an attachment is 5 MB,
now 25 MB). One night they became frustrated with trying to email a dinner party video clip to
his friend. Frustration usually creates a damaging impact on our frame of mind. But they in turn
made world turn on themselves by creating their video sharing platform within a couple of
hours.
15th February 2005
The Company YOUTUBE was formed as like most successful companies (Microsoft,
Google, eBay) in a garage with not much cash, using their savings. The Domain name was
www.youtube.com was registered.
They had their Head Quarters above the pizzeria and Japanese restaurant in San Mateo,
California. The webpage was developed in a couple of months. Since the company’s functional
area is to share the video through the Internet their infrastructure has not concerned them
more.
20 hours of Video are uploaded every minute around the world

2. KAMALAKKANNAN G
DEPARTMENT OF MANAGEMENT STUDIES
PONDICHERRY UNIVERSITY
May 2005
Beta – Test was introduced. This testing was to prove the mettle of the project for getting
financed from the leading Financial Institutions.
They started their business with
Goal: To provide a strong User base
Mission: To Provide fast and easy video access and the ability to share videos frequently
Initially the website was primitive and at the end of the first month there were 40 videos and
almost no user base (Users who registers in the website) and none of the press covered the
release of the website. But CSJ were confident enough to stick with their decision since the
potential for the work they are doing is foreseen as transparent as China Glasses.
They found that the requisite they missed for such poor response is that they never tried to
make the people realize the advantage of such video sharing utility. After discussions, they
came out with Daily $ 250 worth I-Pod Nano scheme. In this scheme the users who are
uploading a video will be considered for lucky draw. For uploading a video the user has to
register in the website. It was an instant hit; and word of mouth took over which fuelled the
initial growth. In just 3 months YouTube experienced unprecedented viral growth.
By the end of July 2005 the website had 30,000 views per day and the growth keep on
increased in thousands every fortnight. By November YouTube got approval from a financial
institution named Sequoia Capital and sanctioned with $ 11.5 Million. From that instant of time
every milestone reached by YouTube was like a roar of a lion with more frequency. By January
2006, the views by the people around the world reached 25 million per day.
Effective utilization of funds by CSJ made them reach the landmark figures. By Mid-2006,
YouTube was one of the fastest growing websites and was ranked the 5th most popular website
on ALEXA and 100 million views daily on YouTube, with an additional 65,000 new videos
uploaded every 24 hours.
In 2007 YouTube consumed as much bandwidth as the entire Internet in 2000

3. KAMALAKKANNAN G
DEPARTMENT OF MANAGEMENT STUDIES
PONDICHERRY UNIVERSITY
9th October 2006
Google purchased YouTube for US$1.65 billion in stock. Three agreements were formed
between Google and CSJ. Operating independent with heads as Co – Founders and also with 67
employees working within the company.
The Key People of YouTube after acquisition by Google are
Co-Founder Chad Hurley-CEO, Co-Founder Steve Chen-CTO, Co-Founder Jawed Karim-Advisor
In Mid-2007 YouTube launched local versions in different countries and also Apple’s iPhone
launched with a YouTube application, further extending YouTube’s penetration in the mobile
market. In August, YouTube introduced “YouTube InVideo Ads”, a set of flash overlays displayed
on the lower portion of videos. Advertisers are charged per impression, and the resulting
revenue will be shared with the clip creator.
The Important Milestones reached by YouTube after the acquisition of Google are
YouTube Hits 100 Million U.S. Viewers on 9th December 2008
YouTube reaches 1Billion Views per day by 8th October 2009
YouTube’s 2007-08 revenue was not mentioned by Google in the year 2007. Forbes Magazine
projected YouTube’s revenue would be US $200 Million. YouTube is currently operating in 22
different languages and localized versions are for 22 Countries.
Nowadays YouTube remain as an effective tool for educating across the boundaries. It acts as a
virtual teacher which leaves no question of doubt in the listeners mind by pictorial orientation.
Thanks to CSG for making World so simple and made it available in the hands of every citizen of
the World.
Moral of the Story:
It's a classic scenario of identifying a problem from the perspective of a consumer and
then addressing a need (Video Uploading not Successful initiated the spark). During the tough
times they didn’t give up in their belief. They listened to their users on what they want and
facilitated the usage to the maximum.
YouTube accounts for 43% of video viewing in Internet