The problem with looking at accounting books and with financialnumbers is that a company’s value is expressed in black and white.
YouTube loses money when it operates as written here. But it is the “outlier” events that cannot be accounted for when putting a valuation in a company.
Check out this extraordinary singer of Susan Boyle.
12 Million viewers on television. 27 Million viewers on YouTube:
http://www.youtube.com/watch?v=9lp0IWv8Q…
How do you value unknown events? Marketers would love to know whensomething can create a massive spike in traffic. Hits and views are themetric to use for advertisers. The problem is, it cannot be predicted.It cannot be forecast or planned. These things just happen.
So, what is the value of a technology or a medium that can blow past the popularity of cable television?
Incidentally, in this video of Susan Boyle, media has determinedthat that Boyle sang “Cry me a River” some 10 years ago. If you do themath, if she sang 50 hrs/wk for 10 years, that is already 26,000 hoursof practice and experience. In Gladwell’s Outliers, you need 10,000hours to realize the potential of your talents and to “hit it big.”
TV has given her the chance, but YouTube has given Susan Boyle that exposure to reach fame.
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