Wednesday, October 08, 2008
YouTube Adds Itunes and Amazon Links to Boost Profit
You may recall my recent post about Google's CEO Eric Schmidt interview with Jim Cramer and his projections for YouTube's future. In light of today's announcement, , Schmidt held his cards close to the vest, when he said
Youtube should prove to be an asset, regardless of the outcome from the online ad revenues.....it's all about traffic.
Less than a week after his "all about traffic" claim, Google announced a new feature that's been added below music videos on Youtube. By clicking "Download This Song on Itunes", viewers are directed to the respective song in the Itunes store or Amazon.Bakari Brock, business affairs counsel at YouTube, told the New York Times
If you like the song, you don’t need to leave Google or leave the site to buy it...For now, the program is limited to buying songs from EMI or the Universal Music Group on iTunes and Amazon. The recently released video game Spore is also available, Mr. Brock said. Over time, YouTube plans to expand the program to include other stores and other merchandise, like concert tickets.
In the span of six days, Youtube's scope of profit may have widened by a substantial amount. If the new Itunes/Amazon feature proves to be even mildly successful, the second-stage of Youtube's plan- merchandise and concert tickets- follows suit, Youtube could prove to be one of Google's biggest assets, even after the $1.65 billion Google dished out for it two years ago.
By Matt O'Hern at 09:56 AM | Comments (2)