A current-state assessment.
Published: May 23rd, 2021.
Here are some possible outcomes for YouTube.
- Google spins out YouTube & Reed Hastings attempts a buyout.
- Reed Hastings sells the Netflix business to Google.
- Reed Hastings negotiates a sale of YouTube from Google
- Google mounts a take over of Netflix
Because circumstances are ripe as we head into the decade, and the Stars may align, for the setup for the World’s largest media conglomerate. We’ll try to indicate that Reed Hastings has options, that are nothing short of gangster moves which make organic sense for a continued consolidation of the media business empire.
It’s only nowadays you’re almost always likely to be viewing content in HD, because your Wi-Fi or LTE connection is fast enough to buffer Content. Before this became a regular thing, you needed to be able to parse a large volume of data through an average sized pipe.
Netflix was the only game in town that had figured out how to compress and transmit high quality data over smaller pipes & larger distances. This is an underrated weapon Netflix possesses. Its is likely only company that didn’t, necessarily, benefit from incremental improvements in internet speeds. Those improvements’ affect was that it made the competition better, and not likely to have solved the problem of streaming at true scale. Half of Netflix’s streaming power is usually locked away; it’s locked away for the day Netflix will host 190 million consecutive subscribers for the Finals of some large sporting event. Now there’s evidence to suggest that there’s another company that’s solved that problem.
YouTube has built itself famed abilities in the online video business. And because it’s free, their audience doesn’t seem to have developed the mildest respect for its brute capacity to generate the Content. But they digest it they will. Obnoxiously so. Netflix measures its success by how long it can get a User to spend time with them on a daily basis. They work hard to improve that number. YouTube wins this contest without even trying. Their average User will sign in multiple times a day, and at varying points in the day. Like a search engine. In fact it’s likely to be the second largest search engine in the World. It’s a spectacular news & media tool for current affairs that’s backed by a recommendation engine that is fine-tuning to find you the obscure information you need, if it were to ever get uploaded.
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