Earlier quoted context omitted.
I've worked at a few places that died this way. CEO: "We're #1 in $NICHE. But growth is the only way, so we need to compete in $BIG_MARKET." [months of de-focus later] CEO: "We're only #10 in $BIG_MARKET and now we totally lost $NICHE!!" Resume writing ensues...
Expanding to $BIG_MARKET is not a bad thing, in fact this is the textbook example of "crossing the chasm", where you start with a niche and expand--if you try to go mainstream from the beginning you will always fail. The problem when you're expanding is you need to have a clear idea of what you are. Because knowing what you are means you can scale by taking advantage of your strengths instead of dumbing it down. Amaz…
And now, of course, (and for quite a while) YouTube is the YouTube of audio.
It should have been apparent that it was foolish to try and beat google on that turf. Google beat them easily with a simpler interface and raw performance. The biggest difference, though: The audio quality on YouTube is actually better. Nail after nail in the coffin.