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It’s time for Alphabet to spin off YouTube?

economist.com

241–250 of 348 posts

Re: It’s time for Alphabet to spin off YouTube?

#241

judging by the way 9 times out of 10 the callback url for a google oauth login is to a youtube domain, i'm going to sarcastically assume that this is architecturally impossible

Where does this number come from? Is this just a made up number, or is this a real statistic?

in my personal experience this happens to me most of the time, but not all the time.

Re: It’s time for Alphabet to spin off YouTube?

#242
Well, YouTube-the-hosting-business definitely doesn't fit in very well with Goo-Alpha-whatever (being, really, an advertising-cum-PI-broker), but that's hardly the fault of the owning company.

Fact is: there is very little business sense in an outfit like YouTube. You have massive server costs, massive bandwidth costs, a fickle audience, a precarious copyright situation, and very little margin for recovery.

Yet, YouTube is and remains popular. Very very popular. So, you would think there is some room for a play there. And there have been sufficient suggestions from various parties on what that play should be. Increase advertising. Go full-Spotify. Et cetera, ad absurdum.

What YouTube has implemented is a mediocre mix of worst-case options: sure, customers can get a subscription, but it does not actually offer any advantages. And yes, partners can create opportunities, but only if they're a top-10 media company, and therefore won't create anything if their life literally depended on it. Smaller partners are smothered: Alpha-Goo-tube could listen to them, but they don't and won't.

So, YouTube right now is an entire market-in-itself waiting to be disrupted. Spotify did it for audio; who will be the disruptor for video, and when, remains to be seen. Given the current market conditions, we'll have to wait a year or two, but that YouTube is toast is pretty much a given.

Re: It’s time for Alphabet to spin off YouTube?

#243

I respect the Economist’s business columnist (Schumpeter) and tech columnist (Babbage) but this seems to be a case of Schumpeter writing about tech. Leaving aside HN loving the idea of Big Tech being weakened by becoming Relatively Small Tech, I don’t see how this is in Alphabet’s or YouTube’s interest. The article assumes that such a divorce would be simple and it would allow YouTube to focus on taking on TikTok. It…

I'm reminded by calls for Apple to buy Nintendo. It focuses on a very specific upside while ignoring or hand-waving away all the challenges that would likely kill what makes these companies work.

Re: It’s time for Alphabet to spin off YouTube?

#244

Earlier quoted context omitted.

But, as you said, google is already stealing your data anyway. Would paying a bit of money every month really make that any worse? But aside from that, it's totally possible to minimize your exposure and still pay for Premium. What I do is have a Google account that is only used for YouTube, paid for through a prepaid debit card, and I only watch YouTube on a single tablet that is not used for any other purpose. It's…

If I give data thieving Google money, I am sending the message that I am OK with their data theft (regardless of going through ridiculous hoops to keep them from stealing it).

Yeah, I'm with you there.

YouTube is the last Google service (outside of Android) that I still use. I'll be ditching it as soon as some other service comes reasonably close to being able to replace it for me. That hasn't happened yet, but the day is coming closer.

Re: It’s time for Alphabet to spin off YouTube?

#245

Earlier quoted context omitted.

No, it’s not comparable in any ways. Car manufacturers sell cars. That’s their main business. Here we have Google using its dominant position in another market to prop up another activity through an advantage. That’s most definitely fall under anti-competitive law at least in Europe (I don’t care about the US. The modern interpretation of American antitrust laws is a complete joke).

Apple's main business was selling computers. Should they not have been allowed to branch out to sell phones or before that music players? Netflix had a dominant business in shipping DVDs to customers. Should they have not branched out to streaming? It's silly to say that companies should never be allowed to branch out to other businesses.

When did Apple ever had a dominant position in the computer market? Ah, yes, never, I was scared that you may have had a point there for moment.

Care to highlight exactly how Netflix used its dominant position in film renting in favour of its streaming business?

It would indeed be silly to say companies can’t branch out. Thankfully no one is so that’s fine.

Re: It’s time for Alphabet to spin off YouTube?

#246
YouTube's problem isn't competitors. They already have most of the eyeballs on the planet. It's that anything new they do is going to cannibalize the rest of their revenue streams. Want to push people to more clips and create a revenue stream there? They need to prove to their creators it won't take revenue away from their existing videos. That makes them very careful to roll out new things. TikTok, by comparison, had no creators to lose, so they can go after new generations of creators or simply be another syndication channel.

Re: It’s time for Alphabet to spin off YouTube?

#247
post #243

I respect the Economist’s business columnist (Schumpeter) and tech columnist (Babbage) but this seems to be a case of Schumpeter writing about tech. Leaving aside HN loving the idea of Big Tech being weakened by becoming Relatively Small Tech, I don’t see how this is in Alphabet’s or YouTube’s interest. The article assumes that such a divorce would be simple and it would allow YouTube to focus on taking on TikTok. It…

I'm reminded by calls for Apple to buy Nintendo. It focuses on a very specific upside while ignoring or hand-waving away all the challenges that would likely kill what makes these companies work.

I see the same kind of thing for Apple to buy Disney. In the abstract, the money and some shared goals make sense, but the reality would be a very challenging struggle to combine two ideologically different companies.

Re: It’s time for Alphabet to spin off YouTube?

#248
This would be an absurd move. Youtube is a property that relies on Google's ad infrastructure AND commercial relationship with advertisers to make sense. You split it and it becomes instantly less appealing cause you're dealing with another network so you can't coordinate campaigns as well as you can in the current system.

It's complete nonsense and shows the person writing has no idea how that particular business works.

Re: It’s time for Alphabet to spin off YouTube?

#249
post #222

Earlier quoted context omitted.

I said “leveraging the ability to change windows” which is not limited to bundling. Making it more difficult to install competitors is “leveraging the ability to change windows.” They very much lost in large part because of a video shown in court of how difficult to install a competitor. They even lied about it by editing their own video which skipped steps showing they knew that behavior was problematic. As to Intel…

Did you ever install Navigator back in the day? It was not difficult to install another browser.

Yes. It wasn’t always difficult, but at various points there were extra hoops you needed to jump through. Again I will point out Microsoft editing a video to skip steps they clearly wouldn’t have done so if the process was reasonable.

They have even swapped peoples browsers with security updates before. Though more recent examples like KB 3135173 seem like a simple mistake, it’s more provocative when such things were common.

Re: It’s time for Alphabet to spin off YouTube?

#250

I can't agree. Ultimately, the article argues for spinoff because of 1) focus, 2) more subscription experimentation, and 3) regulators. But there's zero evidence YouTube is a distraction, it's already done lots of experimenation with subscriptions, and YouTube seems like the last of regulators' concerns with Alphabet. I do think it's true there isn't a whole lot of strategic synergy between YouTube and Google or the…

this is very wrong. You can coordinate a campaign where you have video ads on youtube for let's say a new burger from McDonalds and then the same ads in Maps. Youtube is brand awareness, Maps is to bring customers to physical locations. There's TONS of synergy.
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